How Risky Is GW Pharmaceuticals Stock After Zogenix's Big News?
Call it the yin and yang of the biopharmaceutical industry. Good news for one company is nearly always bad news for another.
Zogenix (NASDAQ: ZGNX) announced very good news last week. Its experimental drug ZX008 proved to be very effective at reducing seizures in a late-stage study of patients with a rare form of epilepsy known as Dravet syndrome. As a result, Zogenix stock skyrocketed -- more than doubling in one day.
However, Zogenix's good news was bad news for GW Pharmaceuticals (NASDAQ: GWPH). Like Zogenix, GW Pharma also has a drug targeting Dravet syndrome. That drug, Epidiolex, is expected to be submitted for U.S. regulatory approval this month for the Dravet syndrome indication, as well as for another type of epilepsy, Lennox-Gastaut syndrome (LGS). While Zogenix stock went up, GW Pharma stock sank, reflecting investors' fears about competition for Epidiolex. But just how risky is GW Pharmaceuticals stock after Zogenix's big news?
Source: Fool.com
