GWP have had a mixed history. Earlier this year the sp dropped by 50% when UK approval for their cannabis based drug, sativex, got delayed. The price has since recovered to basically the pre-delay price. So why could this double from here?
Historically the price has been predicated on the potential of using Sativex for pain relief for MS patients. However, GWP are now pursuing opportunities for more broader use of Sativex, including for cancer patients.
GWP has just announced a major European license deal that provides £12m cash immediaely thereby removing the questions about GW's cash position. The market has not yet responded to this news because of news of an inquest taking place this week. However, imo that inquest is not relevant to GWP (but the outcome will be known in the next few days anyway).
Sativex is approved in Canada. It is being supplied to one health authority in spain and it is likely that more health authorities will start to buy sativex (the new licensee is a spainish pharma company).
GWP recently got permission to re-import sativex from canada back to the uk. therefore uk approval now seems a question of when not if. this approval could be in 2006.
Significant progress in europe is likely in the near future. results due to be reported in Jan 06 likely to be bullish and positive.
Very significantly there are currently rumours of progress in the USA and the possibility that GWP will file an IND in the US. This could result in a major re-rating of the sp.
