Jazz Pharmaceuticals has agreed to purchase the first company to win an FDA approval for a cannabis-based treatment in a deal valued at $7.2 billion.
Under the agreement, Ireland-based Jazz will acquire GW Pharmaceuticals, who won approval for Epidiolex in 2018, a plant-derived cannabinoid treatment for two rare forms of early childhood epilepsy. Sales for Epidiolex skyrocketed by 72 percent in 2020 to $510 million and the drug is considered a potential blockbuster. GW also has a CBD-based treatment in late-stage trials for multiple sclerosis and spinal cord injury. Â
The deal will allow Jazz, which specializes in treatments for sleep disorders and cancer, to expand its neuroscience portfolio from 10 to 19 candidates in clinical programs.
The match-up also adds legitimacy to the pursuit of cannabidiol treatments in the pharma space.
Read the Reuters report.
