GW Pharmaceuticals PLC-ADR GWPH 3.41% stock more than doubled on positive Phase III data on its CBD-derived Epidiolex drug for treatment of Dravet syndrome. In a new report, The Vega Group says that the market has gotten way ahead of itself on the stock and that the valuations analysts are now placing on the drug are completely detached from reality.

“GW Pharmaceuticals falls short in every metric of how once should evaluate an early-to-mid stage drug development company; and yet, we believe WS analysts covering the equity have entirely neglected to price in both internal and external risk factors, a history of operational weakness and unfathomable levels of shareholder dilution,” the report reads.

Vega believes that the post-news spike now has GW’s stock trading more than 50 percent higher than its true value.

Industry expert Alan Brochstein tells…

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