6th Aug 2014 10:17
LONDON (Alliance News) - GW Pharmaceuticals PLC Wednesday said its loss widened in its fiscal third quarter, as higher research and development costs for its Epidiolex Dravet syndrome treatment product and other potential pipeline candidates more than offset increased revenues largely driven by sales of cancer pain and multiple sclerosis drug Sativex.
Its pretax loss in the three months to June 30 widened to GBP6.9 million, from GBP2 million a year earlier, as R&D spending to GBP4.2 million, from GBP2.3 million. The biopharmaceutical firm said revenues rose to GBP7.6 million, from GBP7.3 million a year earlier.
It also booked higher management and administrative expenses, including a GBP1.8 million loss on the translation of dollar denominated cash deposits to pounds sterling, and a GBP1.2 million increase in staff costs. Total management and admin expenses rose to GBP4.1 million in the quarter, from just GBP0.9 million a year earlier.
GW got two boosts for Epidiolex during the quarter, with the drug granted fast-track status by the US Food and Drug Administration in early June and getting "promising" data from physician reports on children and young adults treated with the drug later in the same month.
The group's cash reserves were sharply higher year-on-year in the quarter, up to GBP168.3 million from GBP38.1 million last year after its follow-on offering of American Depositary Shares on NASDAQ. That deal raised a total of around USD69.5 million.
GW shares were down 2.3% to 411.25 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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