Is This the Most Undervalued Cannabis Stock?
The cannabis industry is projected to grow rapidly over the next few years, but companies looking to profit from this trend have several headwinds to deal with. One of these issues is the fact that the regulatory environment surrounding cannabis-based products is still a bit shaky. However, one company has managed to develop a cannabidiol-derived product that was approved by the U.S. Food and Drug Administration (FDA), and that company is cannabis-focused biotech GW Pharmaceuticals (NASDAQ: GWPH).
GW Pharma's Epidiolex was approved in June 2018 for the treatment of seizures associated with Dravet Syndrome or Lennox-Gastaut Syndrome (LGS), two rare forms of epilepsy. Despite this regulatory success -- and Epidiolex's successful launch on the market (more on that below) -- GW Pharma's stock has not performed particularly well of late, even taking into account the recent market downturn related to the COVID-19 pandemic. The company's shares are down by 42.5% since Epidiolex was first approved, whereas the S&P 500 is down by about 10% over the same period (at publication). Are investors underestimating GW Pharma's potential?
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Source Fool.com
