Under terms of the agreement, Jazz will pay $220 per American depositary share of GW Pharmaceuticals, consisting of $200 in cash and $20 in Jazz ordinary shares, the companies said in a statement. The deal is valued at $6.7 billion net of GW cash.
The transaction, which has been approved by the boards of both companies, is expected to close in the second quarter.
The deal will bolster the combined company’s efforts in developing, manufacturing and commercializing regulatory approved therapeutics that address a range of diseases, including epilepsy-related seizures associated with Lennox-Gastaut Syndrome (LGS), Dravet Syndrome and Tuberous Sclerosis Complex (TSC).
Jazz’s lead product, Epidiolex, is the first plant-derived cannabinoid medicine approved by the Food and Drug Administration to treat epilepsy-related seizures.
"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," Jazz CEO Bruce Cozadd said in a statement.
“We believe that Jazz is an ideal growth partner that is committed to supporting our commercial efforts, as well as ongoing clinical and research programs," GW Pharmaceuticals CEO Justin Gover said in the statement.
“Together, we will have an opportunity to reach and impact more patients through a broader portfolio of neuroscience-focused therapies than ever before."
Jazz shares were up 0.91% at $158.73 in trading on Wednesday. GW Pharmaceuticals' American depositary receipts were rising significantly, up 48.17% to $216.70.
GW Pharmaceuticals is one of the top stocks mentioned each week in TheStreet's Cannabis Stocks Watchlist.