Will GW’s sale that is multibillion-dollar floodgates’ to pharma-cannabis deal-making?

GW Pharmaceuticals cannabis

A look inside GW Pharmaceuticals’ production process. The company recently agreed to a $7.2 billion acquisition. (Photo courtesy of GW Pharma)

Jazz Pharmaceuticals’ planned $7.2 billion takeover of United Kingdom-based GW Pharmaceuticals could kick a wave off of deal-making between pharma and medical cannabis organizations, analysts and industry sources state.

But in place of all* that is( producers benefiting, only businesses that have marketable intellectual property and an established foothold in the medical cannabinoid arena will draw serious interest.

In the case of GW, for example, Ireland-based Jazz was attracted to the British company’s cannabis-based epilepsy medicine, Epidiolex.

“In The term that is short you’re likely likely to see numerous LPs benefiting from GW’s news, whenever in fact it has little, if any, effect on a lot of them, unless they’ve deep expertise in R&D, plant genetics and medical trials,” David Kideckel, an analyst for Alberta-based ATB Capital Markets, told Marijuana company frequent.

“There will undoubtedly be upside that is much however, for specific companies playing in GW’s wheelhouse.”

Kideckel highlighted New Brunswick-based Organigram and biosynthetic player Hyasynth Biologicals to its partnership, Ontario-based Cardiol Therapeutics and Alberta-headquartered Willow Biosciences as three samples of the type of organizations that may draw some interest.

Kideckel, whom covers GW for ATB, views the Jazz deal as a validation of kinds for the drugmaker that is u.K.-based

“This is a clear testament to what GW has done, and we think it will transform the industry over time,” he said.

“We Know pharma companies are already engaged, but very few of them will say so publicly.*) that is”(While its well-capitalized Canadian peers paid significant premiums for greenhouses, GW ended up being money that is pouring research and development for its pipeline of cannabinoid-based medicines.

GW spent approximately $560 million on R&D between 2017 and 2020, financial statements show.

R&D Accounts for the portion that is biggest of its workers; 278 of this company’s 901 employees are involved in R&D. The category that is next-biggest commercial, or sales.

GW has leased, not purchased, three cultivation facilities in the U.K. measuring 1.9 million feet that are square 900,000 square legs and 330,000 square legs.

“Just What this does is it validates the science that is cannabinoid-based mid- to large-cap pharma, so I think this could open the floodgates to other unique deals,” Kideckel said.

He Warned that only certain cannabis companies stand to gain.

“GW is in a global world on it’s own. Even though there aren’t other businesses that perform like GW, just what it can is it lends credibility towards the industry of cannabis for pharma,” Kideckel said.

“It took GW two decades to be GW. Rightfully or wrongfully, plenty of

names will play away from GW’s news that is positive think it benefits them positively.

“But from a perspective that is fundamental we don’t understand synergies that GW will provide towards the general industry because of the exceptions of several particular names.”cannabisStandardizationcannabisFor Ken Weisbrod, previously your head of

strategy at Canada’s drug store that is largest, Toronto-based Shoppers Drug Mart, standardization in the medical cannabis field is a prerequisite.

He sees potential for collaborations or joint ventures between pharma companies and businesses with the mix that is right of.“i believe much more companies that are pharma move into the space. We’ve got an opioid crisis raging, but it really hasn’t moved they have gotten stronger as the space has evolved because it requires medical oversight,” Weisbrod told



“There are companies in Canada that have remarkable capabilities to do that, and. Those organizations will stick out and then go internationally as API (active ingredient that is pharmaceutical manufacturers, potentially (joint venturing) with pharma companies.”

The GW-Jazz deal is “a validation of cannabinoid therapy,” Weisbrod said, “but it also sends a message that it, you have to go down that road (proving clinical efficacy) – that’s the right way to do it.

“Jazz if you want to get doctors to prescribe clearly sees that and GW has demonstrated how exactly to do it.”

Paul Pedersen, CEO of British Columbia extractor Nextleaf Possibilities, stated pharma is throwing the tires, but there is however a gap that is huge intense curiosity and active investment.“Pharmaceutical firms engaging in due diligence with Nextleaf are mature in their approach and are taking a approach that is measured the cannabinoid market,” he stated. MarijuanaPedersen thinks the GW purchase will spur more interest from pharma, though he included that“pharma does care about growing n’t plants.”“What pharma cares about specifically is standardized molecules and products that can be taken to market; what GW has done is a example that is perfect” he said.

Intellectual property

  1. Zyus Life Sciences, an organization situated in Saskatchewan, is buying medical research, medical studies and process that is advanced.
  2. “We’re building the company around intellectual property that, once secured, affords the company to make investments in the step that is next that is the information you need to create from preclinical and medical trials, ”
  3. CEO Brent Zettl told

company day-to-day


Zettl stated pharma is after three primary things, including:

U.S. or European Union-Good Manufacturing Practice.

An internet protocol address profile.

Preclinical and data that are clinical

“You look at GW, one of the things they did successfully is they spent north of $100 million a on trials year. That’s just what generated the info,” he said.

“There ended up being a good investment who has become done.”

Other organizations are amassing property that is intellectual biosynthesis, and those with active pharmaceutical ingredient expertise might see further interest from pharma, industry sources say.cannabis“Several of the Canadian LPs, even though they’ve misspent cash over the years, I would argue that their plant genetics go much deeper,” analyst Kideckel said.

Organigram is involved in biosynthesis via its investment in Hyasynth Biologicals, a private biotechnology company in the field of cannabinoid science and biosynthesis.

Cronos Group, a Toronto company, has a partnership with Ginkgo Bioworks in Boston to produce cannabinoids that are culturedcannabisThe big concern

The medical areas in Canada, the usa and Europe are developing in numerous methods, and that’s challenging professionals to generate business that is adaptable.cannabisIn Europe, and in most markets outside North America, medical is distributed in pharmacies. In Canada, however, pharmacy sales remain out of bounds, and most products have to directly be shipped through the producer towards the client.Beyond Distribution, standardization and efficacy play a much bigger role outside North America than they currently do in Canada.

British Columbia-based Tilray was perhaps the first

producer to strike an alliance with a pharma company, Quebec-based Sandoz Canada, in 2018.Marijuana“The big question I’m asking myself is, two or three years from now, will the medical model in the U.S. look more like Europe or more like Canada?” Tilray CEO Brendan Kennedy told [email protected]MJBizDaily

.(*)“I don’t have the answer, but I’m getting the inkling it may look a bit that is little like Canada than most people are assuming.”(*)Matt Lamers is* that is( company Daily(*)’s worldwide editor, based near Toronto. They can be reached at (*).(*)

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