GW Pharmaceuticals is a biopharmaceutical company that focuses on the development and commercialization of cannabinoid-based drugs. The company reported lower-than-expected earnings in the first quarter of fiscal 2016. The company’s key growth driver, Sativex, is marketed in 28 countries outside the U.S. for the treatment of spasticity due to multiple sclerosis. We are positive on the company’s efforts to expand Sativex’s label. Progress of the company’s late-stage candidate, Epidiolex, looks impressive. However, GW Pharma’s drugs may face competition from other cannabinoid-based treatments available in the over-the-counter market. Additionally, the company relies heavily on Sativex for growth, which is concerning.