Dublin-based Jazz Pharmaceuticals has agreed to purchase GW Pharmaceuticals, a pioneer in cannabis-based medicines from the UK in a $7.2 billion deal in a bid to expand its neuroscience division.
Credit: Jordan Greentree / Flickr
The deal is expected to come into fruition in the second quarter of 2021 and will give Jazz access to Epidiolex, a drug developed by GW to treat childhood epilepsy, which became the first cannabinoid to receive US approval in 2018.
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There have been greater moves across the globe for the legalisation of both medicinal and recreational marijuana use, providing a fast-growing pharmaceutical market, particularly in the EU and North America.
Medicinal marijuana use was legalised in the UK in November 2018 following several high-profile cases of children suffering from epilepsy having their symptoms reduced through the use of cannabis oil.
Cannabis use has also been linked with the ability to cure chronic pain and is often prescribed for conditions such as arthritis.
Bruce Cozadd, chairman and CEO of Jazz Pharmaceuticals, said: "We are joining two teams that share a passion for, and track record of, developing differentiated therapies that advance science and transform the lives of patients. This will help facilitate a successful integration and bring added capabilities to Jazz.
"Given the strength of our balance sheet and the meaningful financial drivers of the transaction, we are confident in the value we can deliver to both companies' shareholders and patients. We look forward to welcoming the GW team to Jazz to build an even stronger company."
Justin Gover, CEO of GW Pharmaceuticals, said: "We have a shared vision of developing and commercializing innovative medicines that address significant unmet needs in neuroscience and an approach of putting patients first. Together, we will have an opportunity to reach and impact more patients through a broader portfolio of neuroscience-focused therapies than ever before."
Jazz wishes to expand its portfolio to include treatment for things such as sleeping disorders, oncology and various epilepsies.
The company also hopes the partnership can grow the medicinal cannabis market and stimulate sustainable growth.
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The transaction has been unanimously approved by both companies' board of directors and is subject to approval by GW shareholders as well as sanction by the High Court of Justice of England and Wales.
GW was founded more than two decades ago to push for medical innovations for cannabinoids. Its most widely-used product is Sativex, a drug for multiple sclerosis, which has been approved in over 30 countries.
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