- Total revenue increased 68 percent to $121.3 million - - Epidiolex approved in the U.S. for seizures associated with TSC, launch expected this month - - Conference call today at 4:30 p.m. EDT –
LONDON and CARLSBAD, Calif., Aug. 06, 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 second quarter ended June 30, 2020.
“We were pleased with the strength of U.S. Epidiolex sales in the second quarter in spite of the COVID-19 pandemic. Further, the recent approval and imminent launch of Epidiolex for the treatment of seizures associated with TSC provides a meaningful new opportunity to accelerate momentum through the second half of 2020 and beyond,” stated Justin Gover, GW’s CEO. “We also continue to be excited about the potential of our product pipeline, in particular nabiximols, for which we recently outlined our accelerated US development strategy in the treatment of spasticity in patients with MS and other conditions. We look forward to commencing the nabiximols Phase 3 program as well as multiple other pipeline clinical trials in the second half of the year.”
FINANCIAL RESULTS
Total revenue for the quarter ended June 30, 2020 was $121.3 million compared to $72.0 million for the quarter ended June 30, 2019
Net loss for the quarter ended June 30, 2020 was $8.8 million compared to net income of $79.7 million for the quarter ended June 30, 2019. The prior year quarter included net proceeds of $104.1 million from the sale of a Rare Pediatric Priority Review Voucher.
Cash and cash equivalents at June 30, 2020 were $477.6 million
OPERATIONAL HIGHLIGHTS
Epidiolex (cannabidiol) progress:
Total Q2 net product sales of Epidiolex of $117.7 million
U.S. commercial update
U.S. Epidiolex Q2 net product sales of $111.1 million
TSC indication approved by FDA, August commercial launch planned
TSC payer reimbursement anticipated quickly following launch
European commercial update
Ex-U.S. Epidyolex Q2 net product sales of $6.6 million
Pricing & reimbursement progress in Germany, France and Italy
TSC EMA submission under review
Clinical progress with additional indications
Phase 3 trial in Rett Syndrome expected to re-commence in H2 2020
Strengthening commercial exclusivity
Orphan exclusivity in both the U.S. and EU
3 new patents granted and listed in Orange Book, bringing total of 13 patents listed in Orange Book, 12 of which expire in 2035
One recent patent listed is a non-use patent directed to the oral formulation
Epidiolex composition patent application in process
TSC patent applications under review
Nabiximols
MS Spasticity Clinical program
Three positive Phase 3 MS spasticity trials already completed outside of the U.S.
Five new MS Spasticity Phase 3 trials expected to commence in H2 2020 (2) and H1 2021 (3), any one of which could enable a NDA submission
Phase 3 muscle tone studies – placebo-controlled cross-over design
Post-Traumatic Stress Disorder (PTSD) clinical program
Phase 2/3 study in PTSD (N=~ 325); Expected start: H1 2021
Additional pipeline programs
Schizophrenia (GWP42003)
Phase 2b trial expected to commence H2 2020
CBDV in autism trials expected to recommence in H2 2020
30-patient open label study in autism
Investigator-led 100 patient placebo-controlled trial in autism
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 4:30 pm EDT. To participate in the conference call, please dial 833-937-1050 (toll free from the U.S. and Canada) or 845-403-8302 (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: 35770.
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. GW is currently carrying out a Phase 3 trial in Rett syndrome. 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, as well as for the treatment of PTSD. The Company has additional cannabinoid product candidates in Phase 2 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
Stephen Schultz, VP Investor Relations
917 280 2424 / 401 500 6570
U.S. Media Enquiries: Sam Brown Inc. Healthcare Communications
Common stock - Ordinary shares par value £0.001; 373,709,720 shares outstanding as of June 30, 2020; 371,068,436 shares outstanding as of December31, 2019
575
570
Additional paid-in capital
1,655,500
1,632,046
Accumulated deficit
(854,752
)
(837,959
)
Accumulated other comprehensive loss
(84,386
)
(68,623
)
Total stockholders’ equity
716,937
726,034
Total liabilities and stockholders’ equity
$
870,580
$
882,249
GW PHARMACEUTICALS PLC CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited)
Three MonthsEnded June 30,
Six MonthsEnded June 30,
2020
2019
2020
2019
Revenues
Product net sales
$
121,230
$
71,489
$
241,762
$
110,463
Other revenue
67
549
168
822
Total revenues
121,297
72,038
241,930
111,285
Operating expenses
Cost of product sales
8,708
6,620
19,477
11,751
Research and development
45,734
32,467
91,608
62,842
Selling, general and administrative
75,894
62,273
147,077
117,351
Total operating expenses
130,336
101,360
258,162
191,944
Loss from operations
(9,039
)
(29,322
)
(16,232
)
(80,659
)
Interest income
250
2,310
1,519
4,397
Interest expense
(297
)
(268
)
(581
)
(533
)
Other income
-
104,117
-
104,117
Foreign exchange gain
1,386
2,026
1,366
912
(Loss) income before income taxes
(7,700
)
78,863
(13,928
)
28,234
Income tax expense (benefit)
1,128
(885
)
2,865
(1,450
)
Net (loss) income
$
(8,828
)
$
79,748
$
(16,793
)
$
29,684
Net loss per share:
Basic
$
(0.02
)
$
0.21
$
(0.04
)
$
0.08
Diluted
$
(0.02
)
$
0.21
$
(0.04
)
$
0.08
Weighted average shares outstanding:
Basic
375,525
371,712
374,680
370,776
Diluted
375,525
377,435
374,680
376,674
GW PHARMACEUTICALS PLC CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)
Six Months Ended June 30,
2020
2019
Cash flows from operating activities
Net loss
$
(16,793
)
$
29,684
Adjustments to reconcile net loss to net cash used in operating activities:
Foreign exchange (gain) loss
(488
)
882
Share-based compensation
24,677
23,330
Depreciation and amortization
5,514
4,808
Gain from sale of priority review voucher
—
(104,117
)
Other
27
21
Changes in operating assets and liabilities:
Accounts receivable, net
(31,794
)
(27,924
)
Inventory
(19,669
)
(27,070
)
Prepaid expenses and other current assets
(4,312
)
(6,819
)
Other assets
1,884
1,542
Accounts payable
6,625
3,488
Current tax liabilities
2,732
619
Accrued liabilities
(599
)
13,887
Other liabilities
(2,145
)
(2,192
)
Net cash used in operating activities
(34,341
)
(89,861
)
Cash flows from investing activities
Proceeds from sale of priority review voucher
—
104,117
Additions to property, plant and equipment
(11,362
)
(22,515
)
Additions to capitalized software
(1,455
)
(1,017
)
Additions to intangible assets
(6,404
)
—
Net cash (used) provided by in investing activities
(19,221
)
80,585
Cash flows from financing activities
Proceeds from exercise of stock options
5
2,878
Payments in connection with common stock withheld for employee tax obligation
(1,223
)
—
Payments on finance leases
(146
)
(250
)
Payments on landlord financing obligation
(283
)
(273
)
Net cash (used in) provided by financing activities
(1,647
)
2,355
Effect of exchange rate changes on cash
(4,167
)
(893
)
Net decrease in cash and cash equivalents
(59,376
)
(7,814
)
Cash and cash equivalents at beginning of period
536,933
591,497
Cash and cash equivalents at end of period
$
477,557
$
583,683
Supplemental disclosure of cash flow information:
Income taxes paid
251
3,907
Interest paid
581
533
Supplemental disclosure of noncash information:
Property and equipment purchases in accounts payable and accrued liabilities
1,727
856
Right-of-use asset obtained in exchange for operating liabilities
