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CEO: GW Pharmaceuticals holds more promise

Marijuana meets biotech

While a study showing promising results from its cannabis-derived epilepsy drug sent its stock higher last week,GW Pharmaceuticals has more products in the works, CEO Justin Gover said Friday.

GW Pharma has been able to amass a set of data on difficult-to-treat cases in children that provide a strong signal as to what the drug is doing, Gover told CNBC's "Fast Money."

"This is an incremental process – the data we released this week is just the beginning of that – around 30 young children with epilepsy showing very interesting effects of seizure reduction," he said. "There will be more data from a larger group of children later this year and in 2015."

Gover said he hoped the company would be able to move Epidiolex into Phase III by 2015. The drug utilizes components of the marijuana plant without inducing a "high" feeling.

Shares of GW Pharmaceuticals rose 20 percent last week after the biotech company released promising results of its study on Epidiolex.

Epidiolex has been awarded Fast Track Designation by the Food and Drug Administration because of the obvious unmet need of patients that suffer from epilepsy.

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So far, GW Pharma's studies have focused on patients that suffer from treatment-resistant epilepsy such as Lennox Gastaut and Dravet syndrome.

Phase III trials will involve 160 patients – 80 with Lennox Gastaut and 80 with Dravet.

Epilepsy, spasticity and cancer pain aren't the only conditions that GW Pharma is working on.

"We're also researching into psychiatric disease, diabetes, oncology and a range of other areas as well," he said. "We believe the future of cannabinoids as prescription medicines has the potential to be really quite broad in its application."

By CNBC's Leanne Miller