GW Pharmaceuticals

REDUCE

25/03/2010 Robert Tyerman

GW Pharmaceuticals says Phase IIb preliminary results for its Sativex cancer pain treatment support moving to the next US trial phase.

Based at Porton Down in Wiltshire, the AIM-quoted company says the US trial showed Sativex made ‘significant differences’ in pain scores and met ‘key objectives of providing data’ to support entry into the crucial Phase III of clinical trials. GW and Osuka Pharmaceutical, its licensing partner for Sativex in the USA, are now planning to meet the US Food & Drugs Administration to gain its endorsement for their proposed programme for Phase III.

In Europe, the company says Sativex is ‘in the advanced stages’ of a regulatory submission in the UK and Spain as a treatment for multiple sclerosis spasticity. GW, steered by chairman Dr. Geoffrey Guy and managing director Justin Gover, comments it expects approvals in the second quarter of this year.

Floated at 182p in 2001, GW shares have fluctuated between 60.25p and 141p over the past 12 months. Recommended a year ago by Growth Company Investor at 52.5p, they now trade at 117p. Partial profit taking might be prudent, while retaining a chunk for further potential growth.

Tags: AIM, Deals & contracts

Sector: Pharmaceuticals & Biotechnology

Companies: GW Pharmaceuticals

Market cap: £152m

PE Forecast: 25

Share price: 117p