GW Pharma losses increase ahead of key epilepsy trial results

Cannabis-derived medicines specialist GW Pharmaceuticals posted a £17.7m loss in the first quarter as it gears up to report data from four Phase 3 trials for its Epidiolex product.

GW made £3.7m revenue in the three months to 31 December from its Sativex, less than half the £8.0m a year ago when fees from partners for research and development were higher, with losses also ramped up as research and development spending increased by £9m to £24.1m.

At the period end, cash and equivalents to £219.3m, down from £234.9m at the end of September.

This spending was on taking Epidiolex through a four-trial childhood epilepsy program, with first data expected in March and a second later in the second half for Draevet syndrome, with data for two trials for Lennox-Gastaut syndrome in the second quarter.

Chief executive Justin Gover said he was "very excited at the transformational potential" of these four results.

"The treatment effect data from our expanded access program provide a solid basis for confidence in the outcome of these trials and the potential for Epidiolex to make a meaningful difference to the lives of patients with Dravet syndrome and Lennox-Gastaut syndrome."

The rest of 2016 will be busy, with a first FDA new drug application (NDA) filing, expansion of our US commercial organization, and ongoing data from a number of clinical pipeline programs, including diabetes, cerebral palsy, cancerous tumors and autism.

Shares in GW were up 4.7% to 248.75p by mid afternoon on Wednesday.