Skip to content Skip to footer

Jazz Pharmaceuticals acquires GW Pharma in $7.2 billion deal

Jazz Pharmaceuticals acquires GW Pharma in $7.2 billion deal
Share this story
Share on twitter
Share on linkedin
Share on email

George Brown


 

The deal will see Jazz Pharmaceuticals will gain control of Epidiolex, the cannabis-based medicine used to treat severe types of epilepsy in children.

Epidiolex was approved by the US FDA in 2018 after extensive clinical trials and was the first approved cannabis-based medicine which only contained CBD, which does not create a ‘high’ for users.

The medicine has been approved for use in the U.S, most of Europe and Australia. Total sales reached US$526 million in 2020 and according to Prohibition Partners’ forecast in The Pharmaceutical Cannabis Report, sales will reach US$940m by the end of this year.

Under terms of the deal, Jazz has agreed to buy GW Pharma for $220 per American Depositary Share, which represents a 50% premium to the stock’s close on Tuesday 2nd February. The transaction, to be paid using a mix of cash and Jazz stock, values GW at $7.2 billion, or $6.7 billion excluding GW’s cash on hand.

In a company statement, Bruce Cozadd, Jazz Pharma CEO, said:

“We are excited to add GW’s industry-leading cannabinoid platform, innovative pipeline and products, which will strengthen and broaden our neuroscience portfolio, further diversify our revenue and drive sustainable, long-term value creation opportunities.”

Compared to Sativex and Dronabinol, Prohibition Partners’ estimates that Epidiolex will see the fastest rate of sales and represent the biggest share of the market over the next four years.

Currently, over 192 million people consume cannabis each year, and according to Prohibition Partners’ polling of people across three continents; around 25% of this use is at least partly for medicinal purposes.

The deal represents the continuation of a trend which has seen an increasing number of pharmaceutical heavyweights enter the cannabis industry such as Novartis, Sanofi and Teva Pharmaceuticals.

These projects underline the excitement and financial backing which is building behind this new class of medications.

Recent posts
May 19, 2022
Who Are Europe’s Medical Cannabis Patients?
May 5, 2022
Europe’s Pilot Trials Are a Tentative Step Towards Legal Medical Cannabis
April 28, 2022
The First Sales of Legal Adult-Use Cannabis in Europe Are Due in 2022
April 14, 2022
One Step Forward for CBD in the UK, but Questions Remain at Home and Abroad

Catch up on our newest articles that you might have missed

Untitled design (11)
May 19, 2022
Who Are Europe’s Medical Cannabis Patients?
The relatively close integration of medical cannabis into the European healthcare systems has contributed to a patient population and purchasing...
il-vagabiondo-Q7QCj-9-q3I-unsplash
May 5, 2022
Europe’s Pilot Trials Are a Tentative Step Towards Legal Medical Cannabis
Underlining the cautious approach Europe is taking to the liberalisation of medical cannabis are the pilot trial access schemes for...
vincent-ghilione-z54zUmYA9f8-unsplash
April 28, 2022
The First Sales of Legal Adult-Use Cannabis in Europe Are Due in 2022
Last week the first pilot project trial for the legalised sales of adult-use cannabis in Basel, Switzerland was approved by...
thomas-kelley--8iE9ykf3Us-unsplash
April 14, 2022
One Step Forward for CBD in the UK, but Questions Remain at Home and Abroad
The recent publishing of the list of CBD products with a valid Novel Foods application by the UK’s Food Safety...