Cambridge business GW Pharmaceuticals, whose medicines are based on cannabis, has agreed to sell to the Irish company Jazz Pharmaceuticals – which has major UK and US operations – for $7.2 billion.
The marriage of the two Nasdaq-quoted companies in a cash + shares transaction creates a highly innovative, massively high-growth global biopharma leader.
GW Pharma led the parade of Cambridge companies to Nasdaq and this deal shows the benefits of that strategy.
The $7.2bn includes GW cash. The deal has been approved by both boards and should close in the second quarter of 2021. The combined company will be a leader in neuroscience with a global commercial and operational footprint well positioned to maximise the value of its diversified portfolio.
GW is a global leader in discovering, developing, manufacturing and commercialising novel, regulatory approved therapeutics from its proprietary cannabinoid product platform to address a broad range of diseases.
Its lead product, Epidiolex® (cannabidiol) oral solution, is approved in patients one-year and older for the treatment of seizures associated with Lennox-Gastaut Syndrome (LGS), Dravet Syndrome and Tuberous Sclerosis Complex (TSC), all of which are rare diseases characterised by severe early-onset epilepsy.
Epidiolex was the first plant-derived cannabinoid medicine ever approved by the U.S. Food and Drug Administration (FDA). This product has also been approved, under the tradename Epidyolex®, by the European Medicines Agency (EMA) in patients two years of age and older for the adjunctive treatment of seizures associated with LGS and Dravet syndrome in conjunction with clobazam and is under EMA review for the treatment of seizures associated with TSC.
In addition to the approved indications for Epidiolex, there are considerable opportunities to pursue other indications within the epilepsy field, including other treatment-resistant epilepsies where significant unmet needs of patients exist.
Beyond Epidiolex, GW has a scientific platform and deep innovative pipeline of cannabinoid product candidates, as well as highly specialised manufacturing expertise, developed over two decades of pioneering and building leadership in cannabinoid science.
This pipeline includes nabiximols, for which the company is in Phase 3 trials to seek FDA approval for treatment of spasticity associated with multiple sclerosis and spinal cord injury, as well as earlier-stage cannabinoid product candidates for autism and schizophrenia.
GW’s CEO Justin Gover said: “Over the last two decades GW has built an unparalleled global leadership position in cannabinoid science, including the successful launch of Epidiolex, a breakthrough product within the field of epilepsy, and a diverse and robust neuroscience pipeline.
“We believe that Jazz is an ideal growth partner that is committed to supporting our commercial efforts, as well as ongoing clinical and research programs.
“We have a shared vision of developing and commercialising 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.”
GW has rapidly scaled Epidiolex, achieving approximately $510 million in annual sales within two years of launch and broad access to date, with more than 97 per cent of US lives covered.