Edison Issues ADR Update on GW Pharmaceuticals

LONDON, June 8, 2016 /PRNewswire/ --

Data from two Phase III trials (with 171 and 225 patients, respectively) of Epidiolex in Lennox-Gastaut (LGS) patients are coming soon with the first trial to report out in June with the second coming in Q316. In the latest expanded access program data, Epidiolex reduced atonic/drop seizure frequency by a median of 71.1%. Previous data suggest a placebo response rate in LGS of around 10% which, combined with the size of the trials, indicates sufficient power to demonstrate a difference.

     (Logo: http://photos.prnewswire.com/prnh/20130417/608168 )

Our valuation is now $2.16bn ($98.84/ADS) vs $2.04bn ($93.64/ADS) after increasing the probability of success for Epidiolex in Dravet to 90% from 70% following the successful Phase III trial. Also, the probability of success of TSC has been increased from 30% to 60% following the Dravet results and the initiation of the Phase III trial. These changes on valuation were mitigated somewhat by an increase in R&D and SG&A estimates. We now estimate profitability in 2019 (previously 2018) with a total cash burn of around $230m until then. We estimate that GW has enough cash to achieve its goals without additional capital.  

Click here to view the full report.

All reports published by Edison are available to download free of charge from its website http://www.edisoninvestmentresearch.com.

About Edison: Edison is an international equity research firm with a team of over 110 analysts, investment and roadshow professionals and works with both large and smaller capitalised companies, blue chip institutional investors, wealth managers, private equity and corporate finance houses to support their capital markets activity. Edison provides services to more than 420 retained corporate and investor clients from offices in London, New York, Frankfurt, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority.

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.

Contact details: Learn more at http://www.edisongroup.com and connect with Edison on:  
    
    LinkedIn http://www.linkedin.com/company/edison-investment-research
    Twitter  http://www.twitter.com/Edison_Inv_Res
    YouTube  http://www.youtube.com/edisonitv
    Google+  https://plus.google.com/105425025202328783163/posts

For more information please contact:
Maxim Jacobs            Edison Investment Research        +1-646-653-7027
Nathanial Calloway      Edison Investment Research        +1-646-653-7036
[email protected]

SOURCE Edison Investment Research