Investors are on heightened alert status for anything that looks like a deal in the works, and GW has been on a roll recently with back-to-back positive readouts for Epidiolex. The cannabinoid drug has proven promising for reducing seizures for Lennox-Gastaut syndrome as well as a rare form of severe epilepsy, which has helped push its stock price steadily northward.
Epidiolex uses a pure form of CBD, a compound found in marijuana. The plan now is to follow up with pre-NDA meetings with the FDA with a filing planned next year as some of the more enthusiastic analysts project peak sales in the billions.
The company has a market cap of $2.3 billion, which is still bolt-on size for any of the big buyout players in the market for new therapies.
Pfizer’s $14 billion Medivation buyout, which thwarted Sanofi’s desire for a takeover, has helped reinforce the common wisdom that biotechs with a desirable profile and sales potential are able to command some big premiums.
According to Reuters, GW hasn’t been seeking a bid, but the standard practice in these cases is to play as hard to get as possible, hoping to inspire a bidding war among competing buyers.
Get Endpoints News in your inbox
Newsletters for those who discover, develop, and market drugs. Enjoy the news with the story intact — entire articles in your inbox, no clicks required. Join 12,000+ biopharma pros who read Endpoints News every day. Free subscription.
Subscribe to Endpoints
John Carroll, Editor and Co-Founder
We produce two daily newsletters designed to give you a complete picture of what's important in biopharma.