Home / Business / Cannabis stocks collapse under the effect of the recovery of GW Pharma after the strong launch of Epidiolex

Cannabis stocks collapse under the effect of the recovery of GW Pharma after the strong launch of Epidiolex

Shares of GW Pharmaceuticals PLC were notable on Wednesday after the company announced a good start for Epidiolex, the first cannabis-based drug to gain regulatory approval for the treatment of a serious form of cancer. Epilepsy in children.

GW Pharma shares

GWPH, + 13.80%

rose 14% in the first transactions, setting them on the road to a five-month high, while analysts welcomed the first-quarter results of the fiscal year which showed that Epidolex had achieved a turnover figure of $ 4.7 million since its launch in November.

Cory Kasimov, an analyst at JPMorgan, reiterated his overweight position while raising his stock price target to US $ 180, up from around 134%.

"It's hard to see how the launch of Epidiolex could have been even better," Kasimov wrote in a note to customers. "In our opinion, trade statistics so far suggest that Epidiolex should continue to impress."

Paul Matteis of Stifel Nicolaus increased his price target from 179 USD to 191 USD. He reiterated his purchase note, claiming that, even though the launch of Epidiolex has been impressive, "the progress in repayment is particularly encouraging, as are GW's efforts to simplify the process. prescription (faster shipping) for doctors. "

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Josh Schimmer, an analyst at Evercore ISI, raised his price target from $ 170 to $ 194.

"Still in its early days in the launch, and there is still much to learn about the long-term trajectory and the transition from the initial bolus to the long-term market dynamics," he wrote in a note. "However, we believe that the first signals are very strong and should propel growth."

See also: Aurora Cannabis shares climb to news of marijuana deal for medical purposes in Portugal

Moreover, Mackie Research noted that all presidential candidates of 2020 support the legalization of cannabis, including the Republican candidate, former Massachusetts governor Bill Weld. This marks a radical change from the point of view of the past but is in line with public opinion, which has evolved rapidly in recent years.

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According to the Pew Research Center, about 62% of Americans now support legalization, nearly double the 35% that supported it in 2008. Candidates also consider the tax revenue they can expect from the sale cannabis, as well as job creation and growing support for the end of the era of mass incarceration.

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Valens GroWorks Corp. Shares

VGWCF, -2.18%

rose 6%, after the company declared it had entered into a long-term mining services agreement with Tilray Inc.

TLRY, + 0.63%

Valens will extract at least 15,000 kg of dried cannabis and hemp annually. The terms have not been disclosed. Tilray shares rose 1.4%.

Organigram Holdings Inc. Shares

OGRMF, -1.34%

OGI -2.23%

were down 2% after the company reported that it exercised its right to convert $ 98 million of its convertible bonds to 6.0%, due January 31, 2020, into common shares on April 1. Bonds will be converted into about 18 million shares. Organigram expects to save about $ 4.9 million in cash interest payments that would be payable if it held the debt to maturity.

Shares of CannTrust Holdings Inc.

CTST, + 0.54%

TRST, -0.90%

increased by 1.3%.

Other stocks were lower. Cronos Group Inc.

CRON, -1.43%

down 3.4%, Canopy Growth Corp.

GSC -1.10%

CANNABIS, -1.04%

was down 1.9% and Aphria Inc.

APHA -1.26%

APHA -1.04%

was down 2.8%.

Aurora Cannabis Inc. Shares

CBA -2.71%

CBA -3.14%

decreased by 0.8% and Hexo Corp.

hexo, -0.71%

was down 0.7%.

The ETFMG Alternative Harvest ETF

MJ + 0.68%

up 0.8% and Horizons Marijuana Life Sciences ETF

HMMJ, + 0.50%

was up 0.5%.

The Dow Jones Industrial Average

DJIA, -0.28%

and the S & P 500

SPX, -0.05%

were down about 0.5%.

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