- Jazz Pharmaceuticals is growing its portfolio of neuroscience therapies with the new deal.
- GW Pharmaceuticals specializes in a cannabis-derived treatment for epilepsy.
Jazz Pharmaceuticals is taking over the United Kingdom (UK)–based pharmaceutical firm called GW Pharmaceuticals that specializes in a cannabis-derived treatment for epilepsy. Jazz Pharmaceuticals which is best known for its portfolio of sleep medicines, is buying the company for £5.3 billion (equal to US $ $7.2 billion).
According to the official statement of GW Pharmaceuticals, the cash and stock deal with Jazz Pharmaceuticals would create a neuroscience therapy powerhouse. The new deal will allow Ireland-based Jazz Pharmaceuticals to move beyond treatments for sleep disorders and cancer by adding GW’s Epidolex. In the latest reported quarter, Epidolex brought in sales of $132 million (equal to UK £ 97 million). The deal is expected to close within months, subject to shareholder and regulatory approval. According to the terms of deal, Jazz Pharmaceuticals will pay $ 220 per share, with $200 of that in cash and the rest in shares.
The cannabis-based drug was approved in the United States of America (USA) in 2018. It can be used by patients aged two years and older who suffer from rare childhood-onset forms of epilepsy. The new tie-up is attractive for the company because according to media reports, the US medical cannabis industry has been estimated to grow at pace and attain a wroth beyond $16 billion (equal to £ 11.7 billion) in annual sales by 2025.
Bruce Cozadd, the chairman and Chief Executive Officer (CEO) of Jazz Pharmaceuticals, expressed pride in the leadership position of Jazz Pharmaceuticals in sleep medicines and rapidly growing oncology business. Happy about adding GW’s industry-leading cannabinoid platform and innovative pipeline and products, Cozadd was about the strengthening and broadening of Jazz Pharmaceuticals’ neuroscience portfolio. He said that new deal would help his company to further diversify its revenue and drive sustainable as well as long-term value creation opportunities.