GW Pharmaceuticals plc Reports Third Quarter 2020 Financial Results and Operational Progress

Rhea-AI Summary

GW Pharmaceuticals announced a significant revenue growth of 51% in Q3 2020, totaling $137.1 million, up from $91 million in Q3 2019. The company attributes this success to the launch of Epidiolex for treating seizures associated with Tuberous Sclerosis Complex (TSC). The net loss reduced to $12.2 million from $13.8 million year-over-year. The company is actively progressing clinical trials, including a Phase 3 program for nabiximols in multiple sclerosis spasticity.

Positive

• 51% revenue growth to $137.1 million in Q3 2020
• Epidiolex sales reached $132.6 million in Q3
• Strong market acceptance for Epidiolex's TSC indication with broad payer coverage
• Commencement of Phase 3 trials for nabiximols, indicating potential for future NDA submissions

Negative

• Net loss remains at $12.2 million, although improved from last year
• -

- Total revenue increased 51 percent to $137.1 million – 
- Epidiolex for seizures associated with TSC launched in the U.S. -
- Nabiximols Phase 3 program in MS spasticity now recruiting -
- Conference call today at 8:30 a.m. EST -

LONDON and CARLSBAD, Calif., Nov. 03, 2020 (GLOBE NEWSWIRE) -- GW Pharmaceuticals plc (Nasdaq: GWPH), a world leader in the science, development, and commercialization of cannabinoid prescription medicines, today announced financial results and operating progress for the third quarter ended September 30, 2020.

“We are pleased to report strong revenue growth in the 3^rd quarter despite the challenges presented by COVID-19. Epidiolex meets a serious unmet need within the field of epilepsy and we expect the product to demonstrate continued strong growth in the months and years ahead. The recent expanded indication for the treatment of seizures associated with TSC has been very well received by patients, clinicians and payers,” stated Justin Gover, GW’s Chief Executive Officer. “We have also now commenced the pivotal Phase 3 program for nabiximols in the treatment of multiple sclerosis spasticity, which provides multiple opportunities for an NDA submission, including as early as next year. Beyond nabiximols, we are advancing several clinical-stage pipeline candidates, including the recent start of a Phase 2 trial in schizophrenia.”

FINANCIAL RESULTS

• Total revenue for the quarter ended September 30, 2020 was $137.1 million compared to $91.0 million for the quarter ended September 30, 2019
• Total revenue for the first nine months of 2020 of $378.6 million compared to $202.3 million in the prior year period
• Net loss for the quarter ended September 30, 2020 was $12.2 million compared to net loss of $13.8 million for the quarter ended September 30, 2019
• Cash and cash equivalents at September 30, 2020 were $480.3 million

OPERATIONAL HIGHLIGHTS

• Epidiolex (cannabidiol) progress:
  • Total Q3 net product sales of Epidiolex of $132.6 million
  • U.S. commercial update
    • U.S. Epidiolex Q3 net product sales of $121.6 million
    • TSC indication launched with high prescriber awareness and near universal payer coverage
    • Expanded payer coverage
      • 85 million lives with no/broad prior authorization (+47% year-to-date)
  • Ex-U.S. commercial update
    • Ex-U.S. Epidyolex Q3 net product sales of $11.0 million
    • UK pricing and reimbursement in place. Progress in Germany, France, Italy and Spain
    • TSC EMA submission under review
    • Epidyolex approved in Australia
  • Strengthening commercial exclusivity
    • Orphan exclusivity in both the U.S. and EU
    • 13 patents listed in Orange Book, 12 of which expire in 2035
      • Patents include formulation and method of use
    • Epidiolex composition patent application in process
    • Two further Orange Book listable patents to be allowed or granted by Q1 2021
• Nabiximols development program:
  • First Phase 3 MS Spasticity trial underway
    • Phase 3 placebo-controlled spasm frequency study (N=450)
• MS Spasticity trials due to commence
  • Phase 3 placebo-controlled muscle tone studies:
    • N=52; Expected start Q4 2020 (subject to COVID)
    • N=190; Expected start: Q1 2021
    • N=36 (nabiximols responders); Expected start: Q1 2021
  • Additional Phase 3 placebo-controlled spasm frequency study (N=200) in nabiximols responders expected start Q2 2021
• Spinal Cord Injury (SCI) spasticity clinical program 
  • N=~100 (observational clinical discovery study); Expected start: Q1 2021
  • N=~160 (muscle tone in nabiximols responders); Placebo-controlled parallel group design. Expected start: 2021
  • N=~400 (spasm frequency); Placebo-controlled parallel group design. Expected start: 2021
• Additional pipeline programs:
  • Schizophrenia (GWP42003) 
    • Phase 2b trial now actively recruiting
  • Autism: 
    • CBD formulation Phase 2 study expected to commence in Q1 2021
    • CBDV investigator-led 100 patient placebo-controlled trial in autism – recruitment now resumed
  • New botanical cannabinoid pipeline product (GW541) 
    • Phase 1 trial underway
    • Potential targets within field of neuropsychiatry
  • Neonatal Hypoxic-Ischemic Encephalopathy (NHIE) intravenous CBD program 
    • Phase 1b safety study in patients continues to recruit
    • Orphan Drug and Fast Track Designations granted from FDA and EMA

Conference Call and Webcast Information

GW Pharmaceuticals will host a conference call and webcast today at 8:30 am EST. To participate in the conference call, please dial 877-407-8133 (toll free from the U.S. and Canada) or 201-689-8040 (international). Investors may also access a live audio webcast of the call via the investor relations section of the Company’s website at http://www.gwpharm.com. A replay of the call will also be available through the GW website shortly after the call and will remain available for 90 days. Replay Numbers: (toll free):1-877-481-4010 or 919-882-2331 (international). For both dial-in numbers please use conference Replay ID: 38272.

About GW Pharmaceuticals plc and Greenwich Biosciences, Inc.

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. The Company’s lead product, EPIDIOLEX^® (cannabidiol) oral solution, is commercialized in the U.S. by its U.S. subsidiary Greenwich Biosciences for the treatment of seizures associated with Lennox-Gastaut syndrome (LGS), Dravet syndrome, or tuberous sclerosis complex (TSC) in patients one year of age and older. This product has received approval in the European Union under the tradename EPIDYOLEX^® for the adjunctive treatment of seizures associated with LGS or Dravet syndrome in conjunction with clobazam in patients two years and older and is under EMA review for the treatment of TSC. The Company has a deep pipeline of additional cannabinoid product candidates, in particular nabiximols, for which the Company is advancing multiple late-stage clinical programs in order to seek FDA approval in the treatment of spasticity associated with multiple sclerosis and spinal cord injury. The Company has additional cannabinoid product candidates in clinical trials for autism and schizophrenia. For further information, please visit www.gwpharm.com.

Forward-looking statements
This news release contains forward-looking statements that reflect GW's current expectations regarding future events, including statements regarding financial performance, the timing of clinical trials, the timing and outcomes of regulatory or intellectual property decisions, the relevance of GW products commercially available and in development, the clinical benefits of EPIDIOLEX^®/EPIDYOLEX^® (cannabidiol) oral solution and Sativex^® (nabiximols), and the safety profile and commercial potential of both medicines, and those associated with the COVID-19 pandemic. Forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein and depend on a number of factors, including (inter alia), the success of GW’s research strategies, the applicability of the discoveries made therein, the successful and timely completion and uncertainties related to the regulatory process, and the acceptance of EPIDIOLEX^®/EPIDYOLEX^®, Sativex^® and other products by consumer and medical professionals. A further list and description of risks and uncertainties associated with an investment in GW can be found in GW’s filings with the U.S. Securities and Exchange Commission. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. GW undertakes no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise.

Enquiries:

GW Pharmaceuticals plc
Scott Giacobello, Chief Financial Officer Stephen Schultz, VP Investor Relations	760 795 2200 917 280 2424 / 401 500 6570
U.S. Media Enquiries: Sam Brown Inc. Healthcare Communications
Christy Curran Mike Beyer	615 414 8668 312 961 2502
Ex-U.S. media enquiries
Ben Atwell, FTI Consulting	+44 (0)203 727 1000

GW PHARMACEUTICALS PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)

		September 30,				December 31,
		2020				2019
Assets
Cash and cash equivalents		$	480,330			$	536,933
Accounts receivable, net			80,424				48,883
Inventory			115,036				85,528
Prepaid expenses and other current assets			44,485				28,292
Total current assets			720,275				699,636
Property, plant, and equipment, net			131,204				127,765
Operating lease assets			22,297				24,916
Intangible assets			5,564				—
Goodwill			6,959				6,959
Deferred tax assets			18,123				18,123
Other assets			5,839				4,850
Total assets		$	910,261			$	882,249
Liabilities and stockholders’ equity
Accounts payable		$	17,841			$	9,990
Accrued liabilities			114,898				99,374
Current tax liabilities			—				437
Other current liabilities			7,549				7,760
Total current liabilities			140,288				117,561
Long-term liabilities:
Finance lease liabilities			5,219				5,573
Operating lease liabilities			19,607				21,650
Other liabilities			10,699				11,431
Total long-term liabilities			35,525				38,654
Total liabilities			175,813				156,215
Commitments and contingencies
Stockholders’ equity:
Common stock - Ordinary shares par value £0.001;
374,169,836 shares outstanding as of September 30, 2020; 371,068,436 shares outstanding as of December 31, 2019			575				570
Additional paid-in capital			1,672,237				1,632,046
Accumulated deficit			(866,940	)			(837,959	)
Accumulated other comprehensive loss			(71,424	)			(68,623	)
Total stockholders’ equity			734,448				726,034
Total liabilities and stockholders’ equity		$	910,261			$	882,249

GW PHARMACEUTICALS PLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)

		Three Months Ended September 30,								Nine Months Ended September 30,
		2020				2019				2020				2019
Revenues
Product net sales		$	136,846			$	90,849			$	378,608			$	201,312
Other revenue			207				122				375				944
Total revenues			137,053				90,971				378,983				202,256
Operating expenses
Cost of product sales			7,635				8,150				27,112				19,901
Research and development			56,934				36,301				148,542				99,143
Selling, general and administrative			85,205				64,178				232,282				181,529
Total operating expenses			149,774				108,629				407,936				300,573
Loss from operations			(12,721	)			(17,658	)			(28,953	)			(98,317	)
Interest income			208				2,249				1,727				6,646
Interest expense			(269	)			(272	)			(850	)			(805	)
Other income			-				-				-				104,117
Foreign exchange (loss) gain			(1,796	)			1,889				(430	)			2,801
(Loss) income before income taxes			(14,578	)			(13,792	)			(28,506	)			14,442
Income tax (benefit)expense			(2,390	)			(35	)			475				(1,485	)
Net (loss) income		$	(12,188	)		$	(13,757	)		$	(28,981	)		$	15,927
Net (loss) income per share:
Basic		$	(0.03	)		$	(0.04	)		$	(0.08	)		$	0.04
Diluted		$	(0.03	)		$	(0.04	)		$	(0.08	)		$	0.04
Weighted average shares outstanding:
Basic			376,281				372,246				375,218				371,286
Diluted			376,281				372,246				375,218				376,985

GW PHARMACEUTICALS PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

		Nine Months Ended September 30,
		2020				2019
Cash flows from operating activities
Net loss		$	(28,981	)		$	15,927
Adjustments to reconcile net loss to net cash used in operating activities:
Foreign exchange (gain) loss			(132	)			(418	)
Share-based compensation			40,446				35,633
Depreciation and amortization			9,144				7,096
Gain from sale of priority review voucher			—				(104,117	)
Other			27				39
Changes in operating assets and liabilities:
Accounts receivable, net			(31,654	)			(37,691	)
Inventory			(31,184	)			(37,561	)
Prepaid expenses and other current assets			(8,466	)			(14,869	)
Other assets			2,369				2,968
Accounts payable			8,116				(1,161	)
Current tax liabilities			(8,570	)			(601	)
Accrued liabilities			18,030				29,176
Other liabilities			(2,459	)			(1,943	)
Net cash used in operating activities			(33,314	)			(107,522	)
Cash flows from investing activities
Proceeds from sale of priority review voucher			—				104,117
Additions to property, plant and equipment			(14,259	)			(29,915	)
Additions to capitalized software			(2,365	)			(1,183	)
Additions to intangible assets			(6,404	)			—
Net cash (used) provided by in investing activities			(23,028	)			73,019
Cash flows from financing activities
Proceeds from exercise of stock options			1,577				2,878
Payments in connection with common stock withheld for employee tax obligation			(1,827	)			—
Payments on finance leases			(221	)			(317	)
Payments on landlord financing obligation			(430	)			(404	)
Net cash (used in) provided by financing activities			(901	)			2,157
Effect of exchange rate changes on cash			640				(4,469	)
Net decrease in cash and cash equivalents			(56,603	)			(36,815	)
Cash and cash equivalents at beginning of period			536,933				591,497
Cash and cash equivalents at end of period		$	480,330			$	554,682
Supplemental disclosure of cash flow information:
Income taxes paid			9,106				7,052
Interest paid			530				805
Supplemental disclosure of noncash information:
Property and equipment purchases in accounts payable and accrued liabilities			1,204				1,534
Right-of-use asset obtained in exchange for operating liabilities			507				—

FAQ

What were GW Pharmaceuticals' revenue results for Q3 2020?

GW Pharmaceuticals reported a total revenue of $137.1 million for Q3 2020, a 51% increase from $91 million in Q3 2019.

How did Epidiolex perform in the latest financial report?

Epidiolex achieved Q3 net product sales of $132.6 million, with U.S. sales contributing $121.6 million.

What clinical trials is GW Pharmaceuticals currently conducting?

GW Pharmaceuticals is conducting a Phase 3 program for nabiximols in multiple sclerosis spasticity and advancing several other clinical-stage pipeline candidates.

Did GW Pharmaceuticals report a profit or loss in Q3 2020?

GW Pharmaceuticals reported a net loss of $12.2 million for Q3 2020, slightly improved from a loss of $13.8 million in Q3 2019.

What is the future outlook for GW Pharmaceuticals' products?

The company expects continued growth for Epidiolex and additional opportunities for NDA submissions from nabiximols.