Cannabis drug firm's $31m NASDAQ bow

GW Pharmaceuticals has made a bullish bow on the US technology market NASDAQ - raising $31.2 million

It is issuing 3.5 million American depositary shares at $8.90 per ADS. The liquidity and profile gained on NASDAQ is intended to underpin strong growth on the wealthy side of the Atlantic.

CEO Justin Gover was understandably upbeat. He said: "Today's NASDAQ listing represents a significant milestone for GW. We are pleased that the offering was oversubscribed and very much welcome the interest shown by US investors and the support shown by our UK institutional shareholders in this offering

"We believe that this NASDAQ listing process has significantly increased GW's profile amongst the US investment community and we are very excited about this next phase in our company's history."

The company focuses on discovering, developing and commercialising novel therapeutics from its proprietary cannabinoid product platform. GW has also granted the underwriters a 30-day option to purchase up to an additional 525,000 ADSs at the initial public offering price to cover over-allotments, if any.

Shares have started trading on the NASDAQ Global Market under the symbol GWPH. Closing of the offering is expected on May 7.

Lazard Capital Markets LLC and Cowen and Company, LLC have acted as joint book-running managers for the offering. Canaccord Genuity is acting as co-lead manager and Roth Capital Partners as co-manager.

Founded in 1998 and with major new operations in Histon, Cambridge, GW commercialised the world's first plant-derived cannabinoid prescription drug, Sativex®, which is approved for the treatment of spasticity due to multiple sclerosis in 20 countries.

Sativex is also in Phase 3 clinical development as a potential treatment of pain in people with advanced cancer. This Phase 3 program is intended to support the submission of a New Drug Application for Sativex in cancer pain with the US Food and Drug Administration and in other markets around the world.

GW is regarded as having established a world leading position in the development of plant-derived cannabinoid therapeutics and has a deep pipeline of additional cannabinoid product candidates.

These include two distinct compounds in Phase 2 clinical development for Type 2 diabetes and ulcerative colitis and at least two additional programs expected to enter Phase 1 and Phase 2 clinical trials in the next 12 months.

http://www.businessweekly.co.uk 1/05/2013