GW Pharmaceuticals, which develops cannabis and other controlled drug-based medicines, reported widening losses and reiterated that research spending is set to rise 30 per cent this year.
Its leading product Sativex, an under-the-tongue spray for the treatment of muscle spasms, stiffness and pain associated with MS, and neuropathic cancer, is on the market in Canada. But a series of setbacks means the regulatory process has taken longer than expected in the UK.
Pre-tax losses widened to £7.1 million from £6 million in the six months to the end of March as research and development expenditure rose by £1.5 million £6.5 million.
Profit-taking erased most of yesterday’s gains as the shares gave up almost 7 per cent to 72.75p, down 5.25p.
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The group generated £733,000 in sales of which £501,000 came from Canada, the only country to have granted marketing approval for Sativex. The remaining £232,000 relates to the signing fee from European distribution partner Almirall.
The company now plans to wait for the results from two Phase III trials in neuropathic pain, before deciding how to proceed in Europe. Results are expected at the end of the year.
It said it has a broad development and regulatory strategy for Sativex that provides a number of opportunities over the next few years to obtain product approvals across a range of markets.
In Europe, GW is currently evaluating its regulatory options for Sativex as a treatment for MS spasticity and in parallel is continuing to make progress with its neuropathic pain programme.
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In the United States, approval has been received from the Federal Drugs Agency to enter directly into Phase III trials. This allows the group to expand its ambitions into the world’s largest pharmaceutical market.
Dr Geoffrey Guy, the executive chairman, said in a statement that with a comfortable cash position, a substantial body of evidence supporting the efficacy of Sativex, the results of a series of Phase III trials due over the coming six to 36 months and exciting early-stage opportunities in the pipeline, the prospects for GW are extremely encouraging.
At the end of March GW had £25.4 million in cash. It is likely to spend £6.5 million by September.