GW Pharma (GWPH) is a NASDAQ-traded biotech based in the UK with a primary listing on the London Stock Exchange (GWP is the symbol). After trading quietly for months following its May 1st IPO, the stock has more than tripled. Though it has traded publicly since 2001 without much success, the recent move following an analyst upgrade and dramatic target hike pushed the stock to a multi-year high. The move earlier this year to gain a U.S. listing was brilliant, as it has expanded the investor base and more than doubled analyst following. GW has done a lot of things correctly in my view, and it is poised to benefit from increased investor awareness of its opportunities. I believe that the stock could offer significant returns to investors over the next few years as its rich pipeline develops, with potential 2015 U.S. approval of its lead drug Sativex, already on the market in several other countries, serving as a catalyst.
What is GW Pharma?
GWPH is the first company to market a natural cannabis plant derivative under regulatory approval, with its lead product, Sativex, approved now in 22 countries and on the market in several of these. The "GW" doesn't stand for "good weed", but rather is the initials of its two co-founders, Dr. Geoffrey Guy and Dr. Brian Whittle, who worked with the UK Home Office and other authorities to launch their company in 1998 with a 2001 IPO.