GW Pharmaceuticals set to raise $300m via a secondary stock offering

GW Pharmaceuticals (NASDAQ:GWPH), the UK-based biopharmaceutical company focused on cannabinoid products, has unveiled the details of a secondary stock offering, which will raise proceeds of roughly $300 million.

GW will issue 1.9 million American depositary shares (ADSs), which represent 22.8 million ordinary shares of GW, at a price of $158.00 per ADS on the Nasdaq market. The closing of the offering is set to take place on Friday.

GW has given the underwriters a 30-day option to purchase up to an additional 285,000 ADSs at the offering price.

Goldman Sachs, Morgan Stanley, JP Morgan and Cowen and Company are serving as joint book-runners for the offering.

The US-listed company has been developing cannabidiol-based treatments for Dravet and Lennox-Gastaut syndromes – two rare types of childhood epilepsy that are highly treatment-resistant.

Its drug Epidiolex was approved by the US Food and Drug Administration (FDA) in June 2018 for the treatment of seizures in patients two years of age or older. It is is the first prescription pharmaceutical of highly-purified, plant-derived cannabidiol and the first in a new category of anti-epileptic drugs.

GW Pharmaceuticals shares were flat at $161.23 in Wednesday’s pre-market session.

Story by ProactiveInvestors