Morgan Stanley Sees 70% Upside In GW Pharma

GW Pharmaceuticals PLC- ADR (NASDAQ: GWPH) has announced positive top-line results from the first Phase 3 trial of Epidiolex in Lennox-Gastaut Syndrome [LGS]. Morgan Stanley’s Andrew Berens maintained an Overweight rating for the company, while raising the price target from $149 to $152.

The LGS trial showed a statistically significant reduction in seizures of 44 percent from baseline in the Epidiolex arm, versus 22 percent in the placebo arm. “The disclosed efficacy results are impressive given the population included highly refractory seizure patients on multiple antiepileptic drugs (AEDs),” Berens mentioned.

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Safety data was as expected, with adverse events broadly in-line with those recorded in the first Dravet trial and the expanded access program.

Some Concerns Addressed, Some Remain

Some investors had been concerned about Epidiolex’s efficacy in the absence of clobazam. Berens stated, however, that clinical efficacy was seen without clobazam, including some patients becoming seizure free.

Although some concerns would remain until the full data is available, the release of the data from the first LGS trial “continues to de-risk the Epidiolex clinical development program,” the analyst commented.