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UK: Bayer backs GW's cannabis drug

Stephen Foley

The Independent

Thursday 22 May 2003

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GW Pharmaceuticals, the little drug group developing painkillers made from
cannabis, has won the backing of one of Europe's biggest pharmaceutical
companies for its under-the-tongue spray.

Bayer, the German company famed for discovering aspirin, has signed up to
sell GW's drug in the UK in a deal that could be worth up to £25m. GW
will also be keeping more than 40 per cent of the profits from future sales.

GW will get most of the £25m from Bayer when its painkiller - to be
called Sativex - is approved by the medical authorities in the UK.

GW is so confident of approval that it will borrow against those future
milestones as it readies its manufacturing for the launch, which could come
next year. The company cultivates cannabis in a giant greenhouse at a
secret location in the UK, and has a back-up contract with another secret
grower.

Geoffrey Guy, GW's founder and chairman, said Sativex would be a
prescription-only spray for treating the symptoms of multiple sclerosis and
severe neuropathic pain.

He said: "The deal with Bayer is a third-party endorsement of what we have
been up to. Someone of the standing of Bayer has done due diligence over
the last four or five months and has validated our systems and that we are
a pharmaceutical company capable of supplying them."

GW shares, which were 2.5p higher at 234.5p yesterday, have run up in
recent weeks amid speculation that a marketing deal with a European drugs
giant was imminent. Early talks with GlaxoSmithKline, the UK's number one
pharmaceutical group, failed when GSK decided it did not want to be
associated with a drug derived from cannabis.

 

 

 

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