Cantor Fitzgerald Sees Potential GW Pharma (GWPH) Takeout Price Around $165/Share
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Cantor Fitzgerald analyst Elemer Piros weighed in on GW Pharma (NASDAQ: GWPH) following reports Wednesday the company hired an investment bank to explore strategic alternatives after being approached by potential suitors. The analyst estimates a takeout value near their $165 target price.
Piros commented, "With the recently raised $300 million, and a pro forma cash position of ~$500 million, GW is in a comfortable position to explore potential offers or contemplate launching Epidiolex for refractory epilepsies with its own sales force. We believe that with two positive Phase III results in two different indications, Epidiolex has been substantially de-risked and is on its way for potential approval in 12-15 months. We estimate that the drug has a $2 billion peak sales potential in the U.S. and in Europe. With manufacturing being scaled up, drug supply won't represent a constraint for achieving even higher sales. Considering the pharma-like pipeline behind Epidiolex, we would not be surprised if competition would arise for owning the entire company. We estimate that a takeout value could be in the vicinity of our target price ($165/ADS)."
Shares of GW Pharma closed at $104.03 yesterday.
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