GW Pharmaceuticals acquired by Irish pharmaceutical company Jazz Pharmaceuticals for €6 billion

Jazz Pharmaceuticals, an Irish pharmaceutical company, announced that it has reached an agreement to acquire 7.2 billion $ (6 billion €) in cash and stock from the British manufacturer of medical cannabinoids, GW Pharmaceuticals, notably the manufacturer of the Sativex, which is approved in Europe, and Epidiolex, approved in Europe and the only cannabis-based medication approved by the Food and Drug Administration (FDA).

The proposed transaction would be the largest acquisition in the cannabis industry to date and a key move by a pharmaceutical company into the cannabis sector. It could also boost research and development in this rapidly growing field.

Under the terms of the transaction, each GW shareholder would receive 200 $ in cash and 20 $ in Jazz common stock, for a total consideration of 7.2 billion $.

«What we’ve been able to demonstrate at GW over the past 20 years is that the cannabinoid platform is a real and compelling science,» said Justin Gover, CEO of GW Pharmaceuticals, during a conference call. «There is significant growth potential within the approved indications.»

GW's flagship product is Epidiolex, which is approved in certain countries for the treatment of certain types of epilepsy. It is distributed in Spain and Italy and in France, it accounts for approximately 85% of the company's revenue and generated annual sales of approximately 510 million $ in the two years following its launch.

GW holds 57 U.S. patents and more than 750 international patents, with another 259 pending. Most of these cover cannabinoid-based products, including nabiximols, which are currently being tested as a treatment for multiple sclerosis and spinal cord injuries. The company is also conducting trials of cannabinoid treatments for autism and schizophrenia.

«Given our strong balance sheet and the significant financial drivers of the transaction, we are confident in the value we can deliver to the companies» shareholders and patients,” said Bruce Cozadd, CEO of Jazz Pharmaceuticals.

Founded in 2003, Jazz Pharmaceuticals develops drugs for sleep and movement disorders, as well as for cancer. The company's flagship product is Xyrem, an expensive treatment for narcolepsy that is also approved by the FDA in the United States.