Jazz Pharmaceuticals Plc said on Wednesday it would buy GW Pharmaceuticals plc in a $7.2 billion cash-and-stock deal to bolster its neuroscience business by adding a cannabis-based epilepsy treatment.GW Pharma’s Epidiolex is the first marijuana-derived drug that was approved in the United States for more than two years and generated sales of more than $500 million for the U.K.-based company last year. Analysts expect sales to reach $1 billion soon. The drug is approved for use in patients aged two years and older with Dravet Syndrome and Lennox-Gastaut Syndrome, rare childhood-onset forms of epilepsy that are among the most resistant to treatment. The deal took some cannabis-focused exchange-traded funds (ETFs) by surprise, while many saw it as a seal of approval for the medical marijuana industry by traditional pharma companies.
Ankur Banerjee, Business & Financial News, U.S & International Breaking News | Reuters, 02/03/2021 07:40:00