Renowned UK-based pharmaceutical company, GW Pharmaceuticals, which specializes in the field of cannabis-based epilepsy treatment, has reportedly announced its acquisition by Ireland based Jazz Pharmaceuticals for $7.2 billion.
Speaking on the arrangement, GW Pharmaceuticals has stated that the cash and stock agreement with Jazz Pharmaceuticals, which is well known for its catalogue of sleep medicines, will birth a therapy powerhouse of neuroscience.
Apparently, this deal will allow Jazz to expand its portfolio of treatments for sleep disorders and cancer by adding GW's cannabis-based drug Epidolex, which had fetched sales of over $132 million during the latest quarter.
For the record, this cannabis-based drug had received approval in the US in 2018 for patients aged two years and above that are suffering from rare childhood-onset forms of epilepsy.
GW pharmaceuticals, which is listed in New York, has seemingly been the topic of bid speculation for several years. Jazz, in this regard, has stated that the offer price represented a 50% premium to closing share price of GW on Tuesday.
It has been reported that the terms of the agreement, slated to close within months, are subject to the approvals from shareholder and regulatory bodies and are likely to witness Jazz pay $220 per share, of which $200 would be in cash and the remaining in shares.
According to reliable sources, this collaboration is lucrative for the company as the US medical cannabis industry is projected to grow at a robust rate, recording more than $16 billion in yearly sales at the end of 2025.
Meanwhile, Chairman and CEO of Jazz Pharmaceuticals, Bruce Cozadd, stated that the company is proud of its leading position in the field of sleep medicines and its growing oncology business. Jazz is thrilled to add GW’s industry-leading cannabinoid platform as well as its innovative pipeline of products to its catalogue, which will allow it to strengthen and widen its portfolio of neuroscience and diversify its revenue, driving long-term, sustainable value creation opportunities.