- Jazz to acquire GW for $7.2 billion, expected to close in Q2 2021
- GW's lead product Epidiolex treats seizures in rare epilepsy conditions
- Combined company to have 19 clinical development programs
- Transaction funded by cash and debt financing from BofA Securities and J.P. Morgan
Transaction Overview
Jazz Pharmaceuticals will acquire GW Pharmaceuticals for $7.2 billion, with $220 per American Depositary Share, comprising $200 in cash and $20 in Jazz ordinary shares. The deal, approved by both companies' boards, is expected to close in Q2 2021.
Strategic Impact
The acquisition will create a leader in neuroscience, enhancing Jazz's portfolio with GW's cannabinoid platform and products like Epidiolex, which treats seizures in rare epilepsy conditions. The combined company will have a global commercial and operational footprint.
Product and Pipeline
GW's Epidiolex, approved for treating seizures associated with Lennox-Gastaut Syndrome, Dravet Syndrome, and Tuberous Sclerosis Complex, has achieved $510 million in annual sales. GW also has a pipeline including nabiximols for multiple sclerosis and spinal cord injury, and early-stage candidates for autism and schizophrenia.
Financial Details
The transaction will be funded through cash on hand and debt financing from BofA Securities and J.P. Morgan Securities LLC. Jazz aims to rapidly deleverage to a target net leverage of less than 3.5x by the end of 2022.
Closing Conditions
The deal requires approval from GW shareholders, sanction by the High Court of Justice of England and Wales, and other regulatory approvals. A conference call to discuss the transaction will be held, with details available on the companies' websites.
