On Sept. 26, 2016, GW Pharmaceuticals (Nasdaq:GWPH), a biopharma company with two promising cannabis-based medications, announced positive results for its third study in the United States on the efficacy of Epidiolex, its experimental CBD-based drug, in treating seizures associated with Lennox-Gastaut syndrome, a severe form of pediatric epilepsy. Following the company’s announcement, the stock began to rise and it closed Monday at $126.06, having closed the previous trading day at $107.56.
In this third late-stage study, Epidiolex was added to the treatment plan of those suffering from Lennox-Gastaut syndrome, with the patients taking 20mg of Epidiolex per day achieving a 42% reduction in seizures and the patients taking 10mg per day achieving a 37% reduction in seizures.
According to Reuters, “Morgan Stanley analyst Andrew Berens said the latest positive trial results would further de-risk the Epidiolex development program.”
Following GW Pharma’s announcement on Sept. 26, Cantor Fitzgerald increased its price target for GWPH from $165 to $182. On Sept. 28, GWPH closed at $130.14.