Edison expands North American healthcare sector coverage with ADR report on GW Pharmaceuticals

Aug 13, 2013, 09:00 ET from Edison Investment Research

LONDON, Aug. 12, 2013 /PRNewswire/ -- Edison Investment Research, a leading international investment research firm, announces the initiation of research coverage on the US-listed ADRs of GW Pharmaceuticals (NASDAQ: GWPH), a UK-based pharmaceutical company developing cannabinoid medicines for CNS, metabolic and oncology indications.

The ADR initiation follows GW Pharmaceuticals' US initial public offering (IPO), in which it raised c $30m from the sale of ADRs (each of which represents 12 ordinary shares) in May this year. Edison's comprehensive report examines the investment merits of GW Pharmaceuticals and derives a valuation of $18.90/ADR. It contends that this is a base case valuation as it principally values only GW Pharmaceuticals' lead product, Sativex, in its approved indications in Europe and lead development indication (cancer pain) in the US. It thus excludes any contribution from GW Pharmaceuticals' proprietary R&D activities, which are expected to be funded by the proceeds of the IPO. Edison highlights that its base case valuation would rise to $22.60/ADR on the successful development of Sativex for cancer pain in the US. For the full report see: www.edisoninvestmentresearch.com/research/company/GW-Pharmaceuticals

The launch of ADR coverage on GW Pharmaceuticals is part of a programme of ADR research initiations on foreign-domiciled, US-listed biotech companies, which are specifically tailored for US investors. Edison will continue to provide research coverage in parallel on the London-listed shares of GW Pharmaceuticals. 

Edison provides research coverage on more than 130 healthcare companies in Europe, North America and Australia. Edison has pioneered a scientific, detail-oriented approach to analysing companies in the healthcare sector that is delivered in a concise and non-promotional manner. It aims to inform investors, while providing a realistic assessment of the competitive strengths and threats to key drug development programmes. All facts are carefully sourced and the analysis is underpinned by comprehensive and rigorous financial models. Edison's reports provide an overall company valuation without any specific stock recommendation.

All reports published by Edison are available to download free of charge from its website www.edisongroup.com.

About Edison Investment Research

Edison, the investment intelligence firm, is the future of investor interaction with corporates. Our team of over 100 analysts and investment professionals works with leading companies, fund managers and investment banks worldwide to support its capital markets activity. We provide services to more than 400 retained corporate and investor clients from our offices in London, New York, Berlin, Sydney and Wellington. Edison is authorised and regulated by the Financial Services Authority (www.fsa.gov.uk/register/firmBasicDetails.do?sid=181584).

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information please contact:

Michael Aitkenhead          

Edison Investment Research

+ 1 646 653 7026


About GW Pharmaceuticals

Founded in 1998, GW is a biopharmaceutical company focused on discovering, developing and commercializing novel therapeutics from its proprietary cannabinoid product platform in a broad range of disease areas. GW commercialized the world's first plant-derived cannabinoid prescription drug, Sativex®, which is approved for the treatment of spasticity due to multiple sclerosis in 22 countries. Sativex is also in Phase III clinical development as a potential treatment of pain in people with advanced cancer.

SOURCE Edison Investment Research