Jazz Pharmaceuticals plc (NASDAQ: JAZZ) said on Wednesday it will buy GW Pharmaceuticals (NASDAQ: GWPH) in a cash and stock deal worth $7.2 billion.
The deal will see Jazz expand its neuroscience business and add cannabis-based epilepsy treatment to its array of treatments.
Jazz will pay $220 in the form of $200 in cash totalling $6.7 billion, and $20 in Jazz ordinary shares. The transaction is expected to close in the second quarter of 2021.
GW develops, manufactures, and commercialises regulatory approved therapeutics from its proprietary cannabinoid product platform to treat various diseases. The companies lead product Epidiolex is approved in patients one years and older to treat seizures associated with Lennox-Gastaut Syndrome, Dravet syndrome and Tuberous Sclerosis Complex.
Epidiolex was the first plant-derived cannabinoid medicine ever approved by the FDA.
“Jazz is proud of our leadership position in sleep medicines and rapidly growing oncology business. We are excited to add GW's industry-leading cannabinoid platform, innovative pipeline and products, which will strengthen and broaden our neuroscience portfolio, further diversify our revenue and drive sustainable, long-term value creation opportunities,” said Bruce Cozadd, CEO of Jazz Pharmaceuticals.
While Jazz Pharmaceuticals shares have fallen 4% premarket, GW shares have surged 46% to $213.70.
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Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.