Jazz Pharmaceuticals said Wednesday that it is acquiring GW Pharma, adding an approved childhood epilepsy medicine derived from marijuana to its stable of neuroscience products.
Under terms of the deal, Jazz has agreed to buy GW Pharma for $220 per American Depositary Share, which represents a 50% premium to the stock’s close on Tuesday. The transaction, to be paid using a mix of cash and Jazz stock, values GW at $7.2 billion, or $6.7 billion excluding GW’s cash on hand.
By acquiring GW, Jazz gains control of Epidiolex, a cannabinoid-based medicine approved for three severe types of epilepsy in children. Epidiolex is approved in the U.S. and Europe. Sales totaled $526 million in 2020 and is expected to reach $714 million this year, according to analysts’ consensus forecast.
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