Jazz Pharmaceuticals Plc JAZZ,
said on Wednesday that it had agreed to acquire GW Pharmaceuticals Plc GWPH,
in a cash and stock transaction valued at $ 7.2 billion. Under the terms of the agreement, Jazz Pharma will pay $ 200 per share in cash and $ 20 per share for each share held, or a premium of approximately 50% of GW’s closing price on Tuesday and 60% above its weighted average of 30 days Price. The transaction is expected to close in the second quarter, increase profits in the first year after closing and stimulate double-digit revenue growth. GW is a leader in therapies based on its platform of cannabinoid products for the treatment of several 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 produces sleeping pills and has a growing oncology business. GW Pharma’s shares increased 46% of the premarket after the resumption of transactions, after the news stopped. Jazz shares fell 2.7% premarket, but gained 11% in the last 12 months, while the S&P 500 SPX,
gained 18%.