Marijuana stocks ripped higher Thursday after the U.S. Drug Enforcement Administration classified a cannabidiol (CBD)-based drug made by GW Pharmaceuticals in its least restrictive category, setting the stage for commercial launch.
Shares of the Cambridge, United Kingdom-based company rose 7 percent Thursday morning following the announcement. Peer Canada-based cannabis company Tilray rose 13.7 percent.
Known as Epidiolex, the new GW Pharmaceuticals drug uses CBD to help with the treatment of seizures stemming from two rare and severe forms of epilepsy.
This announcement "renders the launch set-up fairly straightforward for GW into a market where there is significant unmet medical need and very high pent up awareness/demand," wrote Stifel analyst Paul Mattela.
"We continue to recommend the stock on the basis that we believe the Epidiolex launch can exceed first year expectations," the analyst added.
from Top News & Analysis https://ift.tt/2DBFWkK
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