Jazz Pharmaceuticals’ planned $7.2 billion takeover of United Kingdom-based GW Pharmaceuticals could kick off a wave of deal-making between pharma and medical cannabis companies, analysts and industry sources say.
But rather than all cannabis 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 short term, you’re likely going to see many LPs taking advantage of GW’s news, when in reality it will have little, if any, impact on most of them, unless they have deep expertise in R&D, plant genetics and clinical trials,” David Kideckel, an analyst for Alberta-based ATB Capital Markets, told Marijuana Business Daily.
“There will be much upside, however, for specific companies playing in GW’s wheelhouse.”
Kideckel highlighted New Brunswick-based Organigram and its partnership with biosynthetic player Hyasynth Biologicals, Ontario-based Cardiol Therapeutics and Alberta-headquartered Willow Biosciences as three examples of the kind of companies that might draw some interest.
Kideckel, who covers GW for ATB, sees the Jazz deal as a validation of sorts for the U.K.-based drugmaker.
“This is a clear testament to what