Why GW Pharmaceuticals is up 13%


 
 
03:33 02/27/2019

The cannabis story is exploding.

So much so, analysts at Jefferies says the industry could reach $130 billion by 2029. “This assumes full U.S. federal legalization, full recreational and medical legalization across Europe, full medical and recreational legalization across Lat Am, and cannabis disruption of a number of other industries,” noted the analysts, as quoted by Yahoo Finance. “Industries at risk of disruption are pharma, alcohol, health and wellness, pet care and smoking cessation.”

The analysts join a growing chorus of cannabis bullishness.

Cowen for example says U.S. cannabis sales alone could reach $80 billion by 2030 – an increase of $5 billion from earlier estimates, and a 4% compound annual growth rate. Piper Jaffray believes the market for legal cannabis could be worth $15 billion to $50 billion a year, with global sales growing to $250 billion to $500 billion.

One of the stocks getting caught up in the boom is GW Pharmaceuticals GWPH . The stock is up 14%, or 21% a share at the moment after a strong launch for its cannabinoid oil Epidiolex in seizure treatment.

The drug, which launched in November 2018, generated $4.7 million in sales between November 1 and December 31, 2018. Better yet, “more than 500 physicians generated dispensed prescriptions over that two-month time period. In January, the number of filled prescriptions grew by 150% over December,” reported Investor’s Business Daily.

“Now, GW Pharma counts about 130 distribution centers for the CBD oil seizure treatment.” Going forward, the company is pushing for launch in Europe – expected by the second quarter. While the stock is a bit overbought on the news, we see nothing standing in its way.




This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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