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The emergence of the cannabis industry has created a number of wealth building opportunities for investors. There are more 250 publicly traded cannabis companies, however, most of them will dissolve or shut down over the next two years. Today, we are going to discuss 5 companies that every investor should have on their radar.
GW Pharmaceuticals plc (GWPH: NASDAQ)
GW Pharmaceuticals is a biopharmaceutical company focused on discovering, developing and commercializing novel therapeutics from its proprietary cannabinoid product platform. The company commercialized the first plant-derived cannabinoid prescription drug, Sativex, which is approved for the treatment of spasticity due to multiple sclerosis in 27 countries. GW is advancing an orphan drug program in the field of childhood epilepsy with a focus on Epidiolex, which is in Phase 3 clinical development for the treatment of Dravet syndrome and which is also expected to enter Phase 3 clinical trials in the treatment of Lennox-Gastaut syndrome and Tuberous Sclerosis Complex. The company has a deep pipeline of cannabinoid product candidates which should lead to exponential revenue growth for years to come.
Recent developments
May 6, 2015: GWPH commenced a Phase 2 clinical trial of GWP42006 in adult patients with epilepsy. GWP42006 is the non-psychoactive cannabinoid cannabidivarin (CBDV) extracted from the cannabis plant.
May 5, 2015: GWPH closes a U.S. public offering and raised approximately $179.2 Million.
April 27, 2015: The United States Patent and Trademark Office issued GWPH a notice of allowance for a patent application which covers the use of cannabidivarin (CBDV) for treating epilepsy.
April 23, 2015: Bank of America/Merrill Lynch raise GWPH’s price target to $155 from $115.
Insys Therapeutics, Inc. (INSY: NASDAQ)
Insys Therapeutics, Inc. is commercial-stage specialty pharmaceutical company that develops and commercializes innovative supportive care products. INSY is one of the few NASDAQ traded companies that is focused on the development of medicines derived from the cannabis plant. We have a favorable view on the future outlook of INSY for the following reasons: 1) the FDA has granted them the orphan drug designation (ODD) on a variety of treatments in their extensive product pipeline, 2) they have favorable street coverage that offers significant upside potential, 3) their two marketed products can lead to exponential revenue growth, and 4) first quarter financial results showed significant improvement.
Recent Developments
May 7, 2015: INSY announced first quarter financial results. The company generated over $70 million in revenue (91% gross margins) and $8.0 million in net income.
May 7, 2015: The board of directors approved a 2-for-1 stock split. The ex-dividend date is is May 21, 2015. This means if an investor wants to be entitled to the stock dividend they must own INSY as of May 20, 2015.
April 23, 2015: The company started dosing pediatric epilepsy patients in a Phase 1/2 safety and pharmacokinetic study in pediatric subjects with treatment-resistant seizures.
March 3, 2015: INSY beats Wall Street estimates for fourth quarter revenue.
Mentor Capital, Inc. (MNTR: OTCQB)
Mentor Capital, Inc. is a private equity firm specializing in acquisitions. The firm provides passive equity funding and liquidity to smaller companies in the cannabis industry. MNTR invests in shelf IPO’s and public and private companies and seeks to provide public market access to owners of small private companies.
Recent Developments
April 22, 2015: Acquired Cannabis Investor Webcast
April 14, 2015: Arranged for $1.3 million in long term financing
April 10, 2015: Hired an executive to focus on spinning off subsidiaries
March 31, 2015: Reported 2.1 million in revenue during 2014
March 30, 2015: Accepted for DTC FAST Program for DWAC and DRS Handling Business
February 9, 2015: Uplisted onto the OTCQB exchange
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