British cannabis company GW Pharmaceuticals has conducted a successful clinical trial in which it treated epileptic children with one of its marijuana-based drugs, triggering a surge in the company’s stock price.
According to Reuters, tested doses of GW Pharmaceutical’s drug Epidiolex “were found to have induced a statistically significant improvement in reducing seizures” in patients with a particular type of epilepsy during phase III clinical trials.
On Monday, after news of the trials broke, the publicly traded company’s stock shot up 16% to a record high of 811 pence on the London Stock Exchange, Reuters reported. The news agency has said the company is a possible takeover target.
The next step for GW Pharmaceuticals is approval by the U.S. Food and Drug Administration. The company plans to submit a marketing application for Epidiolex to the agency during the first half of next year.
If Epidiolex is approved, according to Reuters, it could become the first U.S.-approved drug extracted from marijuana.
GW Pharmaceuticals’ stock fell from its highs Tuesday on the Nasdaq, closing down $1.15 at $124.91.