Healthcare Roundup – Jazz to acquire GW Pharma in cash-and-stock deal valued at $7.2B; Anavex gains after favorable data from Cassava Sciences in Alzheimer’s

医疗保健精选--Jazz将通过现金和股票交易收购GW Pharma;Cassava Sciences取得阿尔茨海默病治疗的积极试验数据后股价上涨
Published on: February 4, 2021
Author: Amy Liu

Jazz to acquire GW Pharma in cash-and-stock deal valued at $7.2B

Jazz Pharmaceuticals (NASDAQ:JAZZ) is trading ~5.3% lower in the premarket after announcing that it has agreed to acquire GW Pharmaceuticals plc (NASDAQ:GWPH) for $220.00 per American Depositary Share.

The transaction in the form of $200.00 in cash and $20.00 in Jazz ordinary shares represents ~50% of premium to GW’s previous close, valuing the deal at $7.2B in total and $6.7B net of GW cash. The cash portion is funded through a combination of cash on hand and debt financing.

Already approved by the boards of directors of both companies, the transaction, subject to approval by the regulators and GW shareholders, is expected to close in Q2 2021.

“We are excited to add GW’s industry-leading cannabinoid platform, innovative pipeline, and products, which will strengthen and broaden our neuroscience portfolio, further diversify our revenue and drive sustainable, long-term value creation opportunities,” said Bruce Cozadd, CEO of Jazz Pharmaceuticals.

With the announcement of the deal, which combines the proprietary cannabinoid product platform of GW with sleep medicines and the oncology business of JAZZ, Pot stocks have gained attention with ETFMG Alternative Harvest ETF (NYSEARCA:MJ) rising ~6.7% in the premarket.

Anavex gains after favorable data from Cassava Sciences in Alzheimer’s

With a rise of ~32.5%, Cassava Sciences (NASDAQ:SAVA) is extending its gains after yesterday’s announcement of favorable data from an open-label study of simufilam in Alzheimer’s disease.

The fellow biotech developer in Alzheimer’s, Anavex Life Sciences (NASDAQ:AVXL), is also basking in the glory with a gain of ~18.6% today, adding to a ~15.3% rise yesterday.

Anavex’s lead asset ANAVEX®2-73 is currently undergoing a Phase 2b/3 study in Alzheimer’s disease. The enrollment was 80% complete, and full enrollment of 450 patients is expected in early 2021, the company announced in late December.

As the graph illustrates, Anavex shares have surged ~163.3% over the past 12-month period, while Cassava Sciences climbed ~580.3%. In terms of trailing-twelve-month price/book value, Anavex is cheaper, trading at ~17.2x, compared to ~59.2x of Cassava Sciences.

Weighing in on the stock, with a bullish thesis on Anavex, Seeking Alpha contributor Lane Simonian comments: ‘Anavex 2-73 likely has the best chance of long-term success of the current group of drugs being studied for Alzheimer’s disease.

Humanigen and Avid Bio ink manufacturing deal for lenzilumab in COVID-19

Avid Bioservices (NASDAQ:CDMO), up 7% premarket and Humanigen (NASDAQ:HGEN) have entered into a manufacturing services agreement to expand production capacity for lenzilumab, latter’s therapeutic candidate in development for COVID-19.

Under the terms of this cGMP agreement, Avid will initiate technical transfer and analytical validation activities for lenzilumab with the goal of delivering cGMP drug substance batches to support Humanigen’s regulatory and potential commercial activities.

This collaboration enhances commercial production efforts for lenzilumab in advance of potential filings for emergency use authorization and subsequent BLA later this year.

Genomics Healthcare Services Life Science