Last week, marked another milestone of the legal cannabis industry after Jazz Pharmaceuticals (Nasdaq: JAZZ) completed the acquisition of GW Pharmaceuticals plc., a leader in the science, development and commercialization of cannabinoid-based prescription medicines.

Although the acquisition did receive as much attention as the merger between Aphria and Tilray, Inc. (TLRY.TO) (TLRY), we believe the transaction represents an inflection point for the biotech side of the cannabis industry. 

Jazz’s management team is executing on a strategy that is focused on creating an innovative, high-growth, global biopharma leader in neuroscience that has a global footprint. The addition of GW further diversifies Jazz’s commercial portfolio pipeline with therapies that are complementary to its existing business.

For Jazz, the most attractive asset from GW is Epidiolex, a high-growth commercial product that has near-term blockbuster potential. Both companies have a proven track record of developing differentiated therapies that advance science and improve daily life for patients who are suffering from diseases that are often-overlooked.

Epidiolex is a transformative treatment for childhood-onset epilepsy that provides a critical therapeutic option for refractory seizures. In 2020, Epidiolex generated more than $500 million of net sales. This amount of revenue was derived from the US market and GW’s recent expansion in Europe should serve as a near-term growth driver. 

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