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Can Patient Wins Aid GW Pharmaceuticals (GWPH) Q2 Earnings?

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GW Pharmaceuticals plc is scheduled to report second-quarter 2019 results on Aug 6, 2019, after market close.

In the first quarter of 2019, the company’s earnings per share exceeded the Zacks Consensus Estimate by 32.3%. It delivered a positive surprise in three of the trailing four quarters, the average beat being 22.3%.

Let’s take a look at how things are shaping up prior to this announcement.

Factors at Play

Following the U.S.-commercial launch of Epidolex last November as the first cannabis-derived drug for the treatment of patients with Lennox-Gastaut syndrome (LGS) and Dravet syndrome, there has been no turning back for GW Pharmaceuticals.

GW Pharmaceuticals PLC Price and EPS Surprise

GW Pharmaceuticals PLC Price and EPS Surprise

GW Pharmaceuticals PLC price-eps-surprise | GW Pharmaceuticals PLC Quote

Over the last few months, the company is witnessing a solid new patient enrollment for the medicine and also a huge number of physicians are recommending the same in their prescriptions. Epidiolex’ new patient enrollments in the first quarter were as high as 4,500 and at the end of March, more than 7,600 patients were prescribed Epidiolex since the drug’s launch. This high level of market penetration should continue through the second quarter as well.

In terms of coverage determination, the company achieved a major milestone of late. Per the organization, realizing the value proposition for Epidiolex, many payers have already made a coverage determination for the product. For instance, Express Scripts has placed Epidiolex as a preferred brand in its national formulary.

According to GW Pharmaceuticals, more than 80% of all commercial lives covered in the United States now has a coverage determination with 60% of the same covered with either no Prior Authorization (PA) or PA under the label. This, in turn, should further bump up sales for Epidolex in the quarter under review.

Here’s What the Quantitative Model Predicts

The proven Zacks model conclusively shows that any company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has good chances of beating estimates if it also has a positive Earnings ESP. You can see the complete list of today’s Zacks #1 Rank stocks here.

GW Pharmaceuticals has a Zacks Rank of 1 and an Earnings ESP of +1300%, a combination that hints at an earnings beat for the stock this reporting cycle. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are a few other stocks worth considering as these have the right combination of elements to also beat on earnings in the upcoming quarterly results.

Bio-Techne Corporation (TECH - Free Report) has an Earnings ESP of +1.27% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +2.41% and is a Zacks #2 Ranked player.

Anavex Life Sciences Corp. (AVXL - Free Report) has an Earnings ESP of +4.00% and a Zacks Rank of 2.

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