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UK: GW wins U.S. okay for pivotal cannabis drug study

Ben Hirschler

Reuters

Wednesday 04 Jan 2006

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LONDON (Reuters) - GW Pharmaceuticals (GWP.L: Quote, Profile, Research)
has won approval from U.S. regulators to conduct a pivotal Phase III
study into its cannabis-based medicine Sativex as a treatment for cancer
pain, the drug company said on Wednesday.

GW expects to start testing the product, which is sprayed into the
mouth, in U.S. patients with advanced cancer later this year and said it
was raising $15 million (8.6 million pounds) in a discounted share
placing to help fund the trial while it seeks a U.S. partner.

The U.S. randomised clinical trial will involve 250 people and is likely
to last between 24 and 36 months, suggesting Sativex will not be ready
for launch in the U.S. marketplace until towards the end of the decade.

GW shares, which had risen 7.4 percent on Tuesday on rumours of positive
news about Sativex, hit a 20-month high in early trade before retreating
to stand 7.5 percent down on the day at 148 pence in late trade.

GW said it had agreed with Polygon Investment Partners of New York to
raise 8.6 million pounds ($15 million), or 8.1 million after expenses,
by placing 6.2 million new shares at 139.61p each, giving Polygon a 5.4
percent stake in the company.

Canada became the first country in the world to approve Sativex in April
2005 for the relief of neuropathic pain in patients with multiple sclerosis.

GW suffered a setback three weeks ago, however, when an inquest found
the death of a patient taking Sativex in an earlier clinical study was
probably linked to the medicine.

Sativex is GW's leading product and the source of most of the company's
value.

The group grows thousands of marijuana plants at a secret location in
the English countryside, having been granted a dispensation by the
government to use the plant for medical research.

STRONGER HAND IN TALKS

Geoffrey Guy, GW's executive chairman, said the acceptance of the Phase
III study application by the Food and Drug Administration was a
significant achievement for the company that would compress the overall
length of time needed to win U.S. approval by avoiding the need for
earlier-stage trials.

Having the product in final tests should also strengthen GW's hand in
negotiations with potential partners in the United States, where it has
yet to sign up a marketing ally.

Germany's Bayer AG (BAYG.DE: Quote, Profile, Research) is GW's marketing
partner in Canada and Britain, while Almirall of Spain recently agreed
to market the drug in European countries excluding Britain.

Following the deal with Polygon, GW now has 30 million pounds in the
bank, which industry analysts should remove the risk of further fundraising.

Cannabis has a long history of medicinal use dating back to ancient
Chinese times. Queen Victoria, whose physician described it as "one of
the most valuable medicines we possess", is said to have taken cannabis
tincture for her menstrual pains.

It fell out of favour in the 20th century because of a lack of
standardised preparations and the development of more potent synthetic
painkillers.

GW says it has got round those standardisation problems with its
spray-based product, which also avoids the damaging effects of smoking
the drug.

(Additional reporting by Mark Potter)

 

 

 

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