Jazz Pharmaceuticals (NASDAQ: JAZZ), a global pharmaceutical company, has come to an agreement to acquire GW Pharmaceuticals (NASDAQ: GWPH) for $7.2 billion in stock and cash. GW Pharmaceuticals, which is based in the United Kingdom, is one of the biggest medical cannabinoid businesses globally.
This buy would be the biggest move made by a pharmaceutical firm into cannabis to date, which demonstrates that pharma companies recognize both the future and current potential of cannabinoid-based treatments.
This move into cannabis could also encourage more investments into the growing field. Additionally, the deal establishes the validity of GW Pharmaceuticals’ focus on developing new treatments through official regulatory pathways.
The proposed stock and cash transaction reads that every GW Pharmaceuticals shareholder will receive $20 in Jazz ordinary shares for every GW Pharma ADS (American Depositary Share) and $200 in cash. This will result in a total consideration of $7.2 billion.
During a conference call with analysts, GW Pharmaceuticals CEO Justin Gover stated that in the last two decades, the company had been able to show that the cannabinoid platform was a compelling and real science, adding that there’s a lot of potential for growth in the approved indications.
The company’s chief medical product is Epidiolex, which achieved nearly $510 million in yearly sales in two years of its introduction to the market. The drug has been approved in some countries as a treatment for seizure disorders.
Jazz Pharmaceuticals CEO Bruce Cozadd stated that he saw an opportunity to grow sales in Europe. He told analysts that while the GW Pharmaceuticals team had done a remarkable job, there was opportunity to expand.
The deal has been approved by the boards of the respective companies and is expected to close within 2021’s second quarter. Before entering the agreement with GW Pharmaceuticals, Jazz Pharmaceuticals, which is based in Dublin, Ireland, had announced that it expected to report earnings between $2.32 and $2.38 billion last year.
Unlike other marijuana companies that capitalize on medical marijuana products that may not have gone through successful clinical studies, GW Pharmaceuticals has developed products using regulatory approval pathways, which include conducting clinical trials.
In addition to this, GW Pharmaceuticals has spent the majority of its capital on development and research, which helped it become the biggest medical cannabinoid firm globally. The firm has employed more than 192 individuals in operations and manufacturing with an additional 278 in the development and research department.
Furthermore, the company exports its products to more than 30 countries, either for research or commercial purposes. The company’s shares are traded on NASDAQ as GWPH.
On the topic of pharmaceutical-grade cannabinoids, California-based Green Hygienics Holdings Inc. (OTCQB: GRYN) also manufactures bioactive cannabinoids that can be used by the pharmaceutical industry.
NOTE TO INVESTORS: The latest news and updates relating to Green Hygienics Holdings Inc. (OTCQB: GRYN) are available in the company’s newsroom at http://cnw.fm/GRYN
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