Why GW Pharmaceuticals Crashed 17% on Friday

Investors were not happy with the Q2 fiscal 2020 results published by GW Pharmaceuticals (NASDAQ: GWPH), a company that develops and markets cannabidiol (CBD)-based drugs and is therefore considered a marijuana stock. For the quarter, GW Pharmaceuticals booked total revenue of $121.3 million, nearly all of it derived from sales of Epidiolex, a treatment for seizures in patients suffering from three relatively rare disorders. Digging deeper into the numbers, however, shows that Epidiolex sales of $117.7 million were only marginally higher than the Q1 result of $116.1 million.