{"id":40909,"date":"2021-02-04T11:43:42","date_gmt":"2021-02-04T16:43:42","guid":{"rendered":"https:\/\/sciencebusiness.technewslit.com\/?p=40909"},"modified":"2021-02-04T11:43:42","modified_gmt":"2021-02-04T16:43:42","slug":"cannabidiol-drug-maker-acquired-in-7-2b-deal","status":"publish","type":"post","link":"https:\/\/technewslit.com\/sciencebusiness\/?p=40909","title":{"rendered":"Cannabidiol Drug Maker Acquired in $7.2B Deal"},"content":{"rendered":"
\"Cannabis<\/a>
Cannabis plant (Michael Fischer, Pexels.com)<\/figcaption><\/figure>\n

4 Feb. 2021. A developer of treatments for rare neurological diseases derived from cannabis is being acquired by Jazz Pharmaceuticals in a $7.2 billion deal. Jazz Pharmaceuticals plc<\/a> in Dublin, Ireland is purchasing GW Pharmaceuticals plc<\/a> in London for $220.00 a share, in a combination cash and stock transaction.<\/p>\n

GW Pharma develops oral formulations of\u00a0cannabidiol<\/a>\u00a0or CBD derived from the\u00a0Cannabis sativa<\/a> plant that the company says does not produce an emotional high associated with marijuana, also a derivative of cannabis. The\u00a0National Library of Medicine<\/a>\u00a0in the U.S. says some 80 chemicals, known as cannabinoids, are associated with these plants. One of those chemicals, cannabidiol, a non-intoxicating derivative, makes up about 40 percent of cannabis extracts and has been studied extensively for a range of disorders.<\/p>\n

GW Pharma’s lead product is Epidiolex<\/a>, an oral form of cannabidiol approved by the Food and Drug Administration<\/a> in June 2018 as a treatment for seizures associated with Lennox-Gastaut syndrome and Dravet syndrome in patients two years of age or older. Lennox-Gastaut syndrome<\/a> is a rare, severe form of epilepsy marked by multiple types of seizures and intellectual disability, while Dravet syndrome<\/a>\u00a0is also a rare form of epilepsy, marked by frequent or prolonged seizures that begin in the first year but can continue throughout a lifetime.<\/p>\n

As reported by Science & Enterprise<\/a>, the drug is marketed in Europe branded as Epidyolex. In September 2019, the European Commission endorsed a European Medicines Agency recommendation to approve Epidyolex as a supplemental treatment for Lennox-Gastaut syndrome and Dravet syndrome along with the epilepsy drug Clobazam<\/a>\u00a0for patients age 2 years or more. The EC\u2019s endorsement of that decision applies to all 28 countries of the European Union, as well as Norway, Iceland, and Liechtenstein.<\/p>\n

Growing portfolio of neurology drugs<\/h4>\n

Another GW Pharma cannabis-derived drug, nabiximols branded as Sativex, is already approved outside the U.S. as a treatment for spasticity due to multiple sclerosis. The company says a late-stage clinical trial is set to begin in the U.S. for testing nabiximols as a treatment for spasticity from multiple sclerosis and spinal cord injury. GW Pharma says it is also developing therapies for other neurological disorders including Rett syndrome, autism spectrum disorder, and schizophrenia.<\/p>\n

Jazz Pharma is a developer of drugs for mainly for cancer<\/a> but also a growing number of treatments for neurological conditions<\/a>, starting with sleep disorders. The GW Pharma acquisition, says Jazz Pharma’s chairman and CEO Bruce Cozadd<\/a> in a statement, “will strengthen and broaden our neuroscience portfolio, further diversify our revenue and drive sustainable, long-term value creation opportunities.”<\/p>\n

The agreement, valued at $7.2 billion, calls for Jazz Pharma to pay GW Pharma stockholders $220.00 per share, consisting of $200.00 in cash and $20.00 equivalent in Jazz stock. The shares in this case are American depositary shares<\/a>, equity shares in a non-U.S. company held by American banks. GW Pharma’s closing share price on 2 February was $146.25.<\/p>\n

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