Jazz Pharmaceuticals to buy GW for US$7.2b in cash, stock
[WASHINGTON] Jazz Pharmaceuticals has agreed to acquire GW Pharmaceuticals for $7.2 billion in cash and stock, the drugmakers said on Wednesday.
Under the terms of the proposed transaction, Jazz will pay US$220 per GW American Depositary Share, in the form of US$200 in cash and US$20 in Jazz common stock, according to a statement from the companies.
The price amounts to a premium of about 50 per cent over GW's closing price on Tuesday. GW is a developer of cannabinoid-based medications for cancer pain, multiple sclerosis and other conditions. It sells an oral solution called Epidiolex used to treat seizures associated with rare diseases characterized by severe early-onset epilepsy. It was the first plant-derived cannabinoid medicine approved by the US Food and Drug Administration.
Jazz, which has a market value of US$8.7 billion, has an array of drugs for cancer, narcolepsy and other conditions and diseases. The cash portion of the GW deal is expected to be funded with a combination of cash on hand and debt.
The proposed deal has been unanimously approved by the boards of both companies and is expected to close in the second quarter of 2021.
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