GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) prospects on the street are looking brighter by the day as investors take note of the expected expansion of the medical marijuana industry. The company has already made a name for itself as a legitimate marijuana play with a number of products that are already eliciting demand from consumers. Given the growth the company has already experienced, it is emerging as a potential acquisition target.
The wave of consolidation in the healthcare sector that has seen a number of companies acquired has all but continue fuel talk that GW Pharmaceutical could be acquired soon. Fueling speculation that the company could be acquired providing an opportunity for investors to generate some value are reports that the company has hired Morgan Stanley as an advisor on the acquisition talks.
The company’s drug, Sativex, which is designed to treat cancer-related pain, is seen as one of the assets that major drug companies could look to gain access to. Having already been approved in the U.S. the U.K and Canada the drug is also undergoing a late-stage trial as a novel treatment for Multiple Sclerosis.
GW Oncology Assets
Epidiolex another novel treatment for childhood epilepsy is also eliciting interest from other drug makers looking to bolster their portfolio of cancer treatment. The candidate drug is currently undergoing late-stage trials for two separate indications. The drug if approved could generate up to £1.4 billion in annual revenues for the company according to analysts at Cantor Fitzgerald.
The two drugs essentially make the case of why GW Pharmaceutical fits the bill when it comes to being a potential acquisition target. However, the company can still opt to remain as a standalone company if it does not receive the desired valuation given that it is sitting on $500 million in cash pile.
Such a move would not come as a surprise given that GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) is poised to be one of the biggest beneficiaries of more states in the US legalizing medical marijuana.