UK Company Raising $148M to Advance CBD Drug

British drug maker GW Pharmaceuticals plans to raise $148 million from U.S. investors to advance an epilepsy drug that uses cannabidiol (CBD).

The company will sell 1.7 million American Depository Shares on the Nasdaq – where it trades under the symbol GWPH – priced at $86.83 each.

The drug, called Epidiolex, contains cannabidiol oil extracted from a crop of marijuana it grows in England. Epidiolex recently received fast-track status from the U.S. Food and Drug Administration, which means regulators will speed up clinical testing and its potential approval.

The development marks an important step for CBD-based drugs, which ease pain but don’t provide the typical high associated with marijuana.

While cannabis advocates have long touted CBD-specific treatments – such as the popular “Charlotte’s Web oil – the FDA has not approved the drugs. Numerous states have approved CBD-specific laws for children with epilepsy, however families that participate in such programs are still breaking federal law.

The sizable fundraising effort also highlights investor confidence in the company’s research. GW Pharmaceuticals said that a recent 12-week clinical trial on American children produced “encouraging” results in treating epilepsy as well as a disease called Dravet Syndrome, which also causes seizures.

Of nine test patients with Dravet Syndrome, three were seizure-free by the end of the trial period.

GW Pharmaceuticals raised $31 million when it debuted on Wall Street in 2013 and then raised an additional $90 million in January.

One comment on “UK Company Raising $148M to Advance CBD Drug
  1. shulamit on

    As someone who has a medical background I know how meds are pushed and how issues are conditions are made worse because of side effects. I’m thrilled that sanity is finally effecting the medical and legal community and we are looking to natural non toxic substances for healing. Aside from the wonderful products that GW is offering I also found out that Sativex is helpful with over active bladder and issue that many men have. Sativex is a wonderful alternative to the medications that are now used. Since Sativex is being offered in Europe I’m thinking that men in the USA can’t get it. Is there a way that might be possible? Open to any ideas that are legal of course.

    Reply

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