UPDATE: Jazz Pharmaceuticals to Acquire GW Pharma for $ 7.2 Billion in Cash and Stock, GW Up 46% Premarket

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Jazz Pharmaceuticals Plc JAZZ,
+ 1.32%
said Wednesday it has agreed to acquire GW Pharmaceuticals Plc GWPH,
+ 1.51%
in a cash-and-stock deal worth $ 7.2 billion. Under the terms of the deal, Jazz Pharma will pay $ 200 per share in cash and $ 20 in stock for each share it holds, or a premium of about 50% over GW’s closing price on Tuesday, and 60% over its 30-day volume-weighted average. price. The deal is expected to close in the second quarter, to boost earnings in the first year after closing and drive double-digit revenue growth. GW is a leader in therapies based on its proprietary cannabinoid product platform to treat a number of diseases. The company was the first to receive FDA approval for a CBD-based treatment for severe forms of childhood epilepsy in its lead product Epidiolex. Jazz makes sleep medications and has a growing oncology business. GW Pharma shares were up 46% premarket after resuming trading after a stop for the news. Jazz shares were down 2.7% before the market but were up 11% in the last 12 months, while the S&P 500 SPX,
+ 1.39%
has gained 18%.

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