Ireland based Jazz Pharmaceuticals has announced it will acquire GW Pharma for $7.2 billion, or $6.7 billion net of cash. The acquisition is a major push to cannabis products, as GW is the only producer of a cannabidiol medicine approved by the FDA.
The drug, called Epidiolex, is used for the reduction of seizures, and it has reached nearly $510 million in revenues within just two years of launch. The company will also gain access to GW’s robust pipeline, which includes one drug in phase 3 trials which helps alleviate some of the symptoms of MS and spinal cord injuries.
Also in the pipeline are two earlier stage drugs for the treatment of autism and schizophrenia. Should these bets pay off, it would help cement the combined company as a leader in neuroscience.
Jazz has agreed to pay $220 per share of GW Pharma, which consists of $20 in Jazz stock and $200 in cash. The deal is projected to close in the second quarter of 2021.