However, Jazz's stock immediately took a small hit with the announcement, as is typical when one company buys another. DUBLIN and LONDON, Feb. 3, 2021 /PRNewswire/ — Jazz Pharmaceuticals plc (Nasdaq: JAZZ) and GW Pharmaceuticals plc (Nasdaq: GWPH) today announced the companies have entered into a definitive agreement for Jazz to acquire GW for $220.00 per American Depositary Share (ADS), in the form of $200.00 in cash and $20.00 in Jazz ordinary … The company has gone from making a reported $15 million in revenue in 2018 to $311 million in 2019, and recently said it expects to bring in $526 million in 2020, a huge rise in just two years. On Wednesday, Jazz Pharmaceuticals (NASDAQ: JAZZ) announced it's buying GW Pharmaceuticals (NASDAQ: GWPH) for $7.2 million. GW Pharmaceuticals plc 's GWPH shares gained 23.6% after Reuters published a report that many drugmakers have approached the company for a potential. And following the big news about Aphria and Tilray combining their companies, there's a new deal that's making waves in the cannabis sector. Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer. 4 Green Flags For Jazz Pharmaceuticals' Buyout of GW Pharmaceuticals. Returns as of 04/13/2021. Under the terms of the agreement, GW Pharmaceuticals’ shareholders will receive $20.00 worth of shares of Jazz Pharmaceuticals and $200.00 in cash per share. That's not to say its surging revenue won't outstrip its expenses, but it hasn't yet. Announces Investigation of GW Pharmaceuticals plc Buyout, by @nasdaq What may be less obvious, though, is that there's plenty of growth expected in the pharmaceutical use of marijuana. The drug is responsible for most of GW Pharmaceutical's revenue, including $132.6 million of the company's reported $137.1 million third-quarter sales. I think of the two, Jazz is the better buy today. On Wednesday, Jazz Pharmaceuticals (NASDAQ:JAZZ) announced it's buying GW Pharmaceuticals (NASDAQ:GWPH) for $7.2 million. Jazz Pharmaceuticals Plc has agreed to acquire GW Pharmaceuticals Plc, maker of the first drug derived from the cannabis plant to win approval in the U.S., for US$7.2 billion in cash and stock. The oral solution is the only cannabidiol (CBD) approved as a therapy by the FDA. GW Pharmaceuticals plc’s GWPH shares gained 23.6% after Reuters published a report that many drugmakers have approached the company for a potential acquisition. Through the first nine months of 2020, the company reported $378.6 million in revenue, up 88% year over year. In addition, GW has other cannabidiol compounds in trials to treat autism, schizophrenia, and neonatal hypoxic-ischemic encephalopathy -- newborn brain damage caused by oxygen deprivation and limited blood flow. Jazz's focus on oncology and sleep disorder could also be helped by GW Pharmaceutical's cannabis expertise. The suit was filed just before Christmas in a federal court in Waco, Texas. That provides a good short-term opportunity for investors. February 03, 2021 17:33 ET | Source: Rigrodsky Law, P.A. I think Jazz will be able to make more out of GW Pharmaceutical's pipeline and will increase its revenues and margins with the buyout. Small British drugmaker GW Pharmaceuticals (GWPH) soared in the last hour of trading Wednesday on a report that it had hired a banker to field buyout offers. Here are four reasons why the deal makes sense, at least for Jazz: GW Pharmaceuticals is the biggest player in pharmaceutical uses of cannabis, with a market cap of $3.9 billion, making it the sixth-largest marijuana-related stock in the world. On Wednesday, Jazz Pharmaceuticals (NASDAQ:JAZZ) announced it's buying GW Pharmaceuticals (NASDAQ:GWPH) for $7.2 million. *Stock Advisor returns as of November 20, 2020, Like us on Facebook to see similar stories, Key takeaways from the Derek Chauvin murder trial, Day 11, Biden makes the case for infrastructure in a bipartisan meeting, Cramer on Jazz Pharmaceuticals buying GW Pharma for $7.2 billion. The Motley Fool has a disclosure policy. Its shares are up more than 49% over the past year. Posted In: CBD In The News. Tags: Buyout, Flags, Green, Jazz, Pharmaceuticals, Pharmaceuticals' Stock Advisor launched in February of 2002. GW Pharmaceuticals has not consistently made a profit since its founding in 1998, but the company is showing the way toward profitability, thanks to expanded use of its lead therapy, Epidiolex, a liquid formulation of plant-derived cannabidiol used to treat rare childhood-onset epilepsy disorders. SHAREHOLDER ALERT: Rigrodsky Law, P.A. Pot investors are hardly strangers to splashy mergers and acquisitions. Conference call today at 8:30 AM ET. Jazz Pharmaceuticals Plc has agreed to acquire GW Pharmaceuticals Plc, maker of the first drug derived from the cannabis plant to win approval in the U.S., for $7.2 billion in cash and stock. There are 36 U.S. states where medical marijuana is legal, so it seems obvious that medical-use cannabis has a huge upside. Video: Cramer on Jazz Pharmaceuticals buying GW Pharma for $7.2 billion (CNBC), How you can save $1 million for retirement, How much the most populous states pay mail carriers, Creepy ways your company can spy on you while you work from home, Major companies suspend social media advertising over online hate speech, This bookshop survived earthquakes and recessions. On top of that, there will be obvious cost savings when the companies combine, mostly by trimming redundant personnel. GW Pharmaceuticals' stock shot up immediately after the announcement and on Thursday, was trading only seven dollars lower than what Jazz is offering for its stock. I think of the two, Jazz is the better buy today. There are 36 U.S. states where medical marijuana is legal, so it seems … The oral spray, which contains both CBD and THC, is already approved in … February 6th, 2021 . Another cloud on the horizon is the company's lawsuit with Canadian cannabis giant Canopy Growth (NASDAQ:CGC), which is suing GW Pharmaceuticals for patent infringement, saying the British company copied Canopy's method of using carbon dioxide to extract cannabinoid. Jim Halley has no position in any of the stocks mentioned. Cumulative Growth of a $10,000 Investment in Stock Advisor, 4 Green Flags For Jazz Pharmaceuticals' Buyout of GW Pharmaceuticals @themotleyfool #stocks $JAZZ $GWPH $CGC $TLRY $APHA, Copyright, Trademark and Patent Information. The company has gone from making a reported $15 million in revenue in 2018 to $311 million in 2019, and recently said it expects to bring in $526 million in 2020, a huge rise in just two years. They just approach similar diseases with different therapies. GW Pharmaceuticals plc’s GWPH shares gained 23.6% after Reuters published a report that many drugmakers have approached the company for a potential acquisition.GW … Annual revenues from cannabinoid-based pharmaceuticals are expected to grow to $50 billion by 2029, according to Statista Research. GW agreed to a price of $200 cash and $20 in stock for the acquisition. We’re motley! The plant has active ingredients called cannabinoids that are said to have a broad range of medical benefits. Its shares are up more than 49% over the past year. The drug, approved by the U.S. Food and Drug Administration (FDA) in November 2018, is starting to look like a blockbuster therapy. In July, the FDA approved the drug as a therapy for seizures in patients with tuberous sclerosis complex (TSC), a rare genetic disorder that can cause epilepsy and creates benign tumors.This decision came on the heels of a positive phase 3 trial for the drug on TSC announced in 2019. The company has said it will announce its fourth-quarter numbers this month, but in a preliminary report on Jan. 11, said it made $148 million in the fourth quarter, up 35.7% over the same period in 2019. The company has said it will announce its fourth-quarter numbers this month, but in a preliminary report on Jan. 11, said it made $148 million in the fourth quarter, up 35.7% over the same period in 2019. In addition, GW has other cannabidiol compounds in trials to treat autism, schizophrenia, and neonatal hypoxic-ischemic encephalopathy -- newborn brain damage caused by oxygen deprivation and limited blood flow. Announces Investigation of GW Pharmaceuticals plc Buyout. But its transformation into a US company with a focus on rare childhood epilepsy was today rewarded with a buyout by Jazz Pharmaceuticals worth $7.2bn. SHAREHOLDER ALERT: Rigrodsky Law, P.A. GW Pharma … This communication contains forward-looking statements regarding Jazz Pharmaceuticals and GW Pharmaceuticals, including, but not limited to, statements related to the proposed acquisition of GW Pharmaceuticals … Despite COVID-19, sales of Epidiolex were up more than 70% in 2020. However, both GW Pharma and Morgan Stanley have refused to comment and the prospective buyers remain unidentified. How you can save a million bucks for retirement. Jazz Pharmaceutical, with a market cap of $8.42 billion, is a much larger company and has the money to devote to GW Pharmaceuticals to make it a profitable segment and deal with any short-term issues GW Pharmaceuticals may have. 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