One of the biggest names in cannabis-based novel medicine announced this week that it will be acquired by a fellow pharmaceutical player.
Also this week, new numbers show that Canadian sales of legal cannabis are overtaking sales of unregulated products in the country.
Keep reading to find out more cannabis highlights from the past five days.
Big pharma acquisition has cannabis implications
There’s been a new acquisition in the big-cap pharmaceutical space with the confirmation that Jazz Pharmaceuticals (NASDAQ:JAZZ) will acquire GW Pharmaceuticals (NASDAQ:GWPH) in a deal roughly worth US$7.2 billion through a compensation combination of stock and cash.
GW previously earned itself a big spotlight in the cannabis business world when the US Food and Drug Administration approved Epidiolex, a CBD-based medicine to help childhood epilepsy. Epidiolex produces US$510 million in sales per year.
According to Jazz Pharmaceuticals’ press release, the transaction represents a premium of 50 percent over GW’s share price at the close this past Tuesday (February 2).
“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,” Bruce Cozadd, chairman and CEO of Jazz Pharmaceuticals, said in a statement.
New Canadian sales numbers show growth for legal products
New figures from Statistics Canada, first reported by MJBiz Daily, show that the Canadian cannabis industry has reached a long-awaited milestone.
The most recent estimate from the statistics agency is for Q3 2020. During that time, regulated adult-use cannabis sales came to C$824 million, outpacing C$754 million in sales for unlicensed items.
Continuous similar results will show whether this is becoming a trend, but industry members are encouraged to see legal products begin to beat out unregulated offerings for consumers.
George Smitherman, CEO of the industry group Cannabis Council of Canada, told MJBiz Daily he credits the boost to lower prices for regulated cannabis products. “That price reduction has been done entirely by licensed producers. That’s been achieved entirely on the back of licensed producers,” he said.
Cannabis company news
- The Valens Company (TSX:VLNS,OTCQX:VLNCF) shared an extensive update with shareholders, discussing recent advancements in the development of two key facilities, as well as a pending acquisition deal.
- Sundial Growers (NASDAQ:SNDL) told the market it has closed a new offering deal worth US$74.5 million in gross proceeds.
- PharmaCielo (TSXV:PCLO,OTCQX:PCLOF) announced it is ramping up the process to obtain good manufacturing practices (GMP) compliance. The company said it now expects to get Colombian GMP certification in Q1 of this year.
- The Green Organic Dutchman Holdings (TGOD) (TSX:TGOD,OTCQX:TGODF) confirmed it plans to switch its medical cannabis business into a wholesale model. However, the company said existing patients will be able to continue getting TGOD products through the Medical Cannabis by Shoppers marketplace, which is run by Shoppers Drug Mart, a company owned by Loblaw Companies (TSX:L).
Don’t forget to follow us @INN_Cannabis for real-time updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.