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GW Pharmaceuticals plc Reports Third Quarter 2020 Financial Results and Operational Progress
- Total revenue increased 51 percent to $137.1 million –
- Epidiolex for seizures associated with TSC launched in the U.S. -
- Nabiximols Phase 3 program in MS spasticity now recruiting -
- Conference call today at 8:30 a.m. EST -
LONDON and CARLSBAD, Calif., Nov. 03, 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 third quarter ended September 30, 2020.
“We are pleased to report strong revenue growth in the 3rd quarter despite the challenges presented by COVID-19. Epidiolex meets a serious unmet need within the field of epilepsy and we expect the product to demonstrate continued strong growth in the months and years ahead. The recent expanded indication for the treatment of seizures associated with TSC has been very well received by patients, clinicians and payers,” stated Justin Gover, GW’s Chief Executive Officer. “We have also now commenced the pivotal Phase 3 program for nabiximols in the treatment of multiple sclerosis spasticity, which provides multiple opportunities for an NDA submission, including as early as next year. Beyond nabiximols, we are advancing several clinical-stage pipeline candidates, including the recent start of a Phase 2 trial in schizophrenia.”
FINANCIAL RESULTS
Total revenue for the quarter ended September 30, 2020 was $137.1 million compared to $91.0 million for the quarter ended September 30, 2019
Total revenue for the first nine months of 2020 of $378.6 million compared to $202.3 million in the prior year period
Net loss for the quarter ended September 30, 2020 was $12.2 million compared to net loss of $13.8 million for the quarter ended September 30, 2019
Cash and cash equivalents at September 30, 2020 were $480.3 million
OPERATIONAL HIGHLIGHTS
Epidiolex (cannabidiol) progress:
Total Q3 net product sales of Epidiolex of $132.6 million
U.S. commercial update
U.S. Epidiolex Q3 net product sales of $121.6 million
TSC indication launched with high prescriber awareness and near universal payer coverage
Expanded payer coverage
85 million lives with no/broad prior authorization (+47% year-to-date)
Ex-U.S. commercial update
Ex-U.S. Epidyolex Q3 net product sales of $11.0 million
UK pricing and reimbursement in place. Progress in Germany, France, Italy and Spain
TSC EMA submission under review
Epidyolex approved in Australia
Strengthening commercial exclusivity
Orphan exclusivity in both the U.S. and EU
13 patents listed in Orange Book, 12 of which expire in 2035
Patents include formulation and method of use
Epidiolex composition patent application in process
Two further Orange Book listable patents to be allowed or granted by Q1 2021
Nabiximols development program:
First Phase 3 MS Spasticity trial underway
Phase 3 placebo-controlled spasm frequency study (N=450)
MS Spasticity trials due to commence
Phase 3 placebo-controlled muscle tone studies:
N=52; Expected start Q4 2020 (subject to COVID)
N=190; Expected start: Q1 2021
N=36 (nabiximols responders); Expected start: Q1 2021
Additional Phase 3 placebo-controlled spasm frequency study (N=200) in nabiximols responders expected start Q2 2021
Spinal Cord Injury (SCI) spasticity clinical program
N=~100 (observational clinical discovery study); Expected start: Q1 2021
N=~160 (muscle tone in nabiximols responders); Placebo-controlled parallel group design. Expected start: 2021
N=~400 (spasm frequency); Placebo-controlled parallel group design. Expected start: 2021
Additional pipeline programs:
Schizophrenia (GWP42003)
Phase 2b trial now actively recruiting
Autism:
CBD formulation Phase 2 study expected to commence in Q1 2021
CBDV investigator-led 100 patient placebo-controlled trial in autism – recruitment now resumed
New botanical cannabinoid pipeline product (GW541)
Phase 1 trial underway
Potential targets within field of neuropsychiatry
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 8:30 am EST. To participate in the conference call, please dial 877-407-8133 (toll free from the U.S. and Canada) or 201-689-8040 (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: 38272.
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. 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. The Company has additional cannabinoid product candidates in clinical 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 | |
Scott Giacobello, Chief Financial Officer | 760 795 2200 |
U.S. Media Enquiries: | |
Christy Curran | 615 414 8668 |
Ex-U.S. media enquiries | |
Ben Atwell, FTI Consulting | +44 (0)203 727 1000 |
GW PHARMACEUTICALS PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
September 30, | December 31, | |||||||
2020 | 2019 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 480,330 | $ | 536,933 | ||||
Accounts receivable, net | 80,424 | 48,883 | ||||||
Inventory | 115,036 | 85,528 | ||||||
Prepaid expenses and other current assets | 44,485 | 28,292 | ||||||
Total current assets | 720,275 | 699,636 | ||||||
Property, plant, and equipment, net | 131,204 | 127,765 | ||||||
Operating lease assets | 22,297 | 24,916 | ||||||
Intangible assets | 5,564 | — | ||||||
Goodwill | 6,959 | 6,959 | ||||||
Deferred tax assets | 18,123 | 18,123 | ||||||
Other assets | 5,839 | 4,850 | ||||||
Total assets | $ | 910,261 | $ | 882,249 | ||||
Liabilities and stockholders’ equity | ||||||||
Accounts payable | $ | 17,841 | $ | 9,990 | ||||
Accrued liabilities | 114,898 | 99,374 | ||||||
Current tax liabilities | — | 437 | ||||||
Other current liabilities | 7,549 | 7,760 | ||||||
Total current liabilities | 140,288 | 117,561 | ||||||
Long-term liabilities: | ||||||||
Finance lease liabilities | 5,219 | 5,573 | ||||||
Operating lease liabilities | 19,607 | 21,650 | ||||||
Other liabilities | 10,699 | 11,431 | ||||||
Total long-term liabilities | 35,525 | 38,654 | ||||||
Total liabilities | 175,813 | 156,215 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Common stock - Ordinary shares par value £0.001; | ||||||||
374,169,836 shares outstanding as of September 30, 2020; | 575 | 570 | ||||||
Additional paid-in capital | 1,672,237 | 1,632,046 | ||||||
Accumulated deficit | (866,940 | ) | (837,959 | ) | ||||
Accumulated other comprehensive loss | (71,424 | ) | (68,623 | ) | ||||
Total stockholders’ equity | 734,448 | 726,034 | ||||||
Total liabilities and stockholders’ equity | $ | 910,261 | $ | 882,249 | ||||
GW PHARMACEUTICALS PLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenues | ||||||||||||||||
Product net sales | $ | 136,846 | $ | 90,849 | $ | 378,608 | $ | 201,312 | ||||||||
Other revenue | 207 | 122 | 375 | 944 | ||||||||||||
Total revenues | 137,053 | 90,971 | 378,983 | 202,256 | ||||||||||||
Operating expenses | ||||||||||||||||
Cost of product sales | 7,635 | 8,150 | 27,112 | 19,901 | ||||||||||||
Research and development | 56,934 | 36,301 | 148,542 | 99,143 | ||||||||||||
Selling, general and administrative | 85,205 | 64,178 | 232,282 | 181,529 | ||||||||||||
Total operating expenses | 149,774 | 108,629 | 407,936 | 300,573 | ||||||||||||
Loss from operations | (12,721 | ) | (17,658 | ) | (28,953 | ) | (98,317 | ) | ||||||||
Interest income | 208 | 2,249 | 1,727 | 6,646 | ||||||||||||
Interest expense | (269 | ) | (272 | ) | (850 | ) | (805 | ) | ||||||||
Other income | - | - | - | 104,117 | ||||||||||||
Foreign exchange (loss) gain | (1,796 | ) | 1,889 | (430 | ) | 2,801 | ||||||||||
(Loss) income before income taxes | (14,578 | ) | (13,792 | ) | (28,506 | ) | 14,442 | |||||||||
Income tax (benefit)expense | (2,390 | ) | (35 | ) | 475 | (1,485 | ) | |||||||||
Net (loss) income | $ | (12,188 | ) | $ | (13,757 | ) | $ | (28,981 | ) | $ | 15,927 | |||||
Net (loss) income per share: | ||||||||||||||||
Basic | $ | (0.03 | ) | $ | (0.04 | ) | $ | (0.08 | ) | $ | 0.04 | |||||
Diluted | $ | (0.03 | ) | $ | (0.04 | ) | $ | (0.08 | ) | $ | 0.04 | |||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 376,281 | 372,246 | 375,218 | 371,286 | ||||||||||||
Diluted | 376,281 | 372,246 | 375,218 | 376,985 | ||||||||||||
GW PHARMACEUTICALS PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Nine Months Ended September 30, | ||||||||
2020 | 2019 | |||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (28,981 | ) | $ | 15,927 | |||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Foreign exchange (gain) loss | (132 | ) | (418 | ) | ||||
Share-based compensation | 40,446 | 35,633 | ||||||
Depreciation and amortization | 9,144 | 7,096 | ||||||
Gain from sale of priority review voucher | — | (104,117 | ) | |||||
Other | 27 | 39 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable, net | (31,654 | ) | (37,691 | ) | ||||
Inventory | (31,184 | ) | (37,561 | ) | ||||
Prepaid expenses and other current assets | (8,466 | ) | (14,869 | ) | ||||
Other assets | 2,369 | 2,968 | ||||||
Accounts payable | 8,116 | (1,161 | ) | |||||
Current tax liabilities | (8,570 | ) | (601 | ) | ||||
Accrued liabilities | 18,030 | 29,176 | ||||||
Other liabilities | (2,459 | ) | (1,943 | ) | ||||
Net cash used in operating activities | (33,314 | ) | (107,522 | ) | ||||
Cash flows from investing activities | ||||||||
Proceeds from sale of priority review voucher | — | 104,117 | ||||||
Additions to property, plant and equipment | (14,259 | ) | (29,915 | ) | ||||
Additions to capitalized software | (2,365 | ) | (1,183 | ) | ||||
Additions to intangible assets | (6,404 | ) | — | |||||
Net cash (used) provided by in investing activities | (23,028 | ) | 73,019 | |||||
Cash flows from financing activities | ||||||||
Proceeds from exercise of stock options | 1,577 | 2,878 | ||||||
Payments in connection with common stock withheld for employee tax obligation | (1,827 | ) | — | |||||
Payments on finance leases | (221 | ) | (317 | ) | ||||
Payments on landlord financing obligation | (430 | ) | (404 | ) | ||||
Net cash (used in) provided by financing activities | (901 | ) | 2,157 | |||||
Effect of exchange rate changes on cash | 640 | (4,469 | ) | |||||
Net decrease in cash and cash equivalents | (56,603 | ) | (36,815 | ) | ||||
Cash and cash equivalents at beginning of period | 536,933 | 591,497 | ||||||
Cash and cash equivalents at end of period | $ | 480,330 | $ | 554,682 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Income taxes paid | 9,106 | 7,052 | ||||||
Interest paid | 530 | 805 | ||||||
Supplemental disclosure of noncash information: | ||||||||
Property and equipment purchases in accounts payable and accrued liabilities | 1,204 | 1,534 | ||||||
Right-of-use asset obtained in exchange for operating liabilities | 507 | — | ||||||
