Jazz Pharma To Buy Cannabinoid-Drug Maker For $7.2 Billion
GW sells a medication called Epidiolex
Jazz Pharmaceuticals Plc has agreed to acquire GW Pharmaceuticals Plc, maker of the first drug derived from the cannabis plant to win approval in the U.S., for $7.2 billion in cash and stock.
The price amounts to a premium of about 50% over Cambridge, England-based GW’s closing price on Tuesday. GW’s U.S.-traded shares gained as much as 49% in Wednesday trading, and Jazz shares declined 3.7%.
Under the terms of the proposed transaction, Jazz will pay $220 per GW American depositary receipt, in the form of $200 in cash and $20 in Jazz common stock, according to a statement from the companies.
GW sells a medication called Epidiolex for children with severe epilepsy that was approved by the U.S. Food and Drug Administration in June 2018. The drug’s active compound, cannabidiol, produces an anticonvulsant effect through its interaction with prominent components of the nervous system. The plants from which the compound is drawn are bred to be low in THC, the chemical associated with getting high.
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