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The company that makes the epidiolex gets bought by an Irish-based biopharmaceutical company

Jazz Pharma Epidiolex

Jazz Pharma buys GW Pharma for $ 7,2 billion, adding cannabis drug to its portfolio

Huge deal: Jazz Pharma acquires UK pharmaceutical company GW Pharmaceuticals, maker of epidiolex CBD, for $ 7,2 billion. For each share, GW Jazz will receive $ 200 in cash and $ 20 in shares. Jazz Pharmaceuticals Plc said on Wednesday it had agreed to buy GW Pharmaceuticals plc in a cash and equity deal that will boost its neuroscience business with the addition of an epilepsy treatment based on cannabis.

Epidiolex from GW Pharma, the first marijuana-derived drug to be approved in the United States, generated more than $ 500 million in sales for the United Kingdom-based company last year. Analysts expect sales to hit $ 1 billion soon.

For $ 7,2 billion, partly in cash and partly in shares, the American company Jazz Pharmaceuticals takes control of the pharmaceutical company GW Pharmaceuticals - maker of Epidiolex, the first drug in the world to contain a cannabis component ( CBD) and for sale officially by the FDA, US Drug Administration.

Under the agreement, GW will receive $ 200 in cash from Jazz Pharma and $ 20 in shares for each share. Since yesterday's report, GW stock has climbed around 67% on the stock market, while Jazz stock has fallen around 5%.

The drug Epidiolex contains the CBD molecule, which is considered to be an effective anti-dielectric substance and is used in Israel to treat people with autism for the purpose of relieving seizures. According to Professor Raphael, meshulam is also an effective drug for type 2 diabetes and an ideal substance for the treatment of schizophrenia. Epidiolex, as the name suggests, was registered in 2018 as a medicine for the treatment of Derva syndrome and Lennox-Gasto syndrome - types ofrare and severe epilepsy. For about six months, it has also been recognized for the treatment of tuberous sclerosis, a lumpy sclerosis.

In addition to Epidiolex, which contains only CBD, GW manufactures and markets another therapeutic product containing components of cannabis - Stivex - an oral spray containing half of the CBD and half of the THC, the psychoactive component of cannabis. It is the presence of THC that prevents GW from gaining FDA approval and recognition as an official drug. Stevex is also marketed worldwide for medical treatment, particularly in countries where there is no developed medical cannabis industry. In Israel, the product is marketed by the pharmaceutical company Neopharm as a treatment for multiple sclerosis (MS).

"Today could be a significant turning point as a more traditional pharmaceutical company has agreed to buy GW Pharma," said declared Nawan Butt, portfolio manager of the Medical Cannabis and Wellness UCITS ETF. More and more companies are discovering the benefits of cannabinoid products, and cannabis and cannabinoid products are rapidly gaining acceptance by the public and at the federal government level.

https://www.reuters.com/article/gw-pharma-ma-jazz-pharms/update-4-jazz-pharma-to-buy-gw-pharma-for-72-bln-adding-cannabis-based-drug-to-portfolio-idUSL4N2K93IM?fbclid=IwAR3PqaEw0gn7tK8h8xy-3P0LJqdNYOsD3D4jOGeebtVrOT98ERBI5pSihUk

Jazz Pharmaceuticals specializes in cancer research and many other areas, but is best known for its drug for the treatment of narcolepsy (sleeping sickness). Jazz has been criticized over the years for the high cost of the drug, which in 2019 alone generated over $ 1,6 billion.

This seems like a not-so-bad deal for GW who could face a relative loss of exclusivity in the global CBD market as the component becomes legal, common and accessible in more and more countries. When it becomes possible to buy CBD freely without a prescription, it is likely that the drug's value has declined.

Tags : Epidiolex"Sativex"
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