Jazz Pharmaceuticals to buy cannabis-based drugmaker GW Pharma for $6.7 billion

Jazz Pharmaceuticals has agreed to acquire GW Pharmaceuticals, maker of the first epilepsy drug derived from the marijuana plant, for $6.7 billion. GW Pharmaceuticals’ drug cannabidiol (Epidiolex) is used to treat rare forms of epilepsy and had global sales of $510 million last year, the companies said. U.K.-based GW launched the drug in 2018 at a price of about $32,500 per patient annually in the United States. GW’s pipeline includes cannabinoid-based drugs being tested as treatments for autism, schizophrenia and other conditions. Under the terms of the sale, holders of GW’s American depositary shares will receive $220 per share, a 50% premium to GW’s share price as of February 2. The price includes $200 per share in cash and $20 in Jazz stock.