Jazz Pharmaceuticals Plc JAZZ,
said Wednesday that it has agreed to acquire GW Pharmaceuticals Plc GWPH,
in a cash and stock transaction valued at $ 7.2 billion. Under the terms of the agreement, Jazz Pharma will pay $ 200 per share in cash and $ 20 in shares for each share owned, or a premium of around 50% over GW’s closing price on Tuesday, and 60 % over your weighted average volume of 30 days price. The deal is expected to close in the second quarter, to boost profit in the first year after closing and to boost double-digit revenue growth. GW is a leader in therapies based on its platform of patented cannabinoid products to treat a range of diseases. The company was the first to receive FDA approval for a CBD-based treatment for severe forms of childhood epilepsy in its leading Epidiolex product. Jazz manufactures sleeping pills and has a growing oncology business. GW Pharma’s shares rose 46% before the market after resuming trading after a news stop. Jazz shares fell 2.7% before the market, but gained 11% in the last 12 months, while the S&P 500 SPX,
won 18%.
