{"id":2966,"date":"2016-09-16T17:30:43","date_gmt":"2016-09-16T17:30:43","guid":{"rendered":"http:\/\/www.medicalmarijuanainc.com\/?p=17463"},"modified":"2016-09-16T17:30:43","modified_gmt":"2016-09-16T17:30:43","slug":"dr-titus-insights-biotechs-cannabis","status":"publish","type":"post","link":"https:\/\/medicalmarijuanainc.com\/2016\/09\/16\/dr-titus-insights-biotechs-cannabis\/","title":{"rendered":"Dr. Titus Insights: Biotechs and Cannabis"},"content":{"rendered":"
This week: <\/span><\/p>\n <\/p>\n Pharmaceutical industry leader GW Pharmaceuticals Plc (NASDAQ: GWPH, London: GWP.L) a developer of marijuana-based medications approved in Europe and Canada for Multiple Sclerosis muscular spasticity patients, announced this week that it is working with a large New York investment bank, Morgan Stanley. \u00a0The news came as a result of other drug manufacturers approaching GW Pharma with expressions of interest in a potential acquisition. \u00a0<\/span><\/p>\n Thanks to recent developments in the US marketplace with an emerging and highly coveted medication known as Epidiolex, numerous pharma companies have started to take notice of GW\u2019s patents and potential pipeline of cannabis-based medications. \u00a0Epidiolex, which is undergoing clinical development and fast-track status in the US for the treatment of epileptic seizure reduction, has shown safety plus 44% efficacy so far in pivotal Stage 3 trials for the treatment of seizure disorders in Lennox-Gastaut and Dravet\u2019s Syndrome children.<\/p>\n The move in hiring Morgan Stanley shows that GW is a coveted target for potential acquisition. \u00a0Although the identity of potential suitors has not been established, rumors abound that groups such as pharma giant, Pfizer are showing significant interest in such acquisition. \u00a0Thus cannabis and cannabinoid based therapeutics are quite possibly the next great arena for big pharma to develop blockbuster pharma medications for a wide variety of ailments and conditions.<\/p>\n Biotech stocks are notorious volatile and in recent months have been somewhat on the downside, as US Presidential candidates and members of Congress have roasted pharma companies for price-gouging. \u00a0GW\u2019s move is the latest sign that the biotech stock sell-of may be over as deal-making is picking up. \u00a0Last month, Pfizer Inc. (PFE, NYSE) clinched a $14 billion acquisition of US cancer drug manufacturer Medivation, Inc. (OTC: MDVN).<\/p>\n It is believed that other players in the market for central nervous system treatments such as Biogen Inc. (OTC: BIIB) and Allergan Plc (AGN, NYSE) are searching for acquisition deals to build out their commercial presence in this sector; further to strengthen their research and development pipelines.<\/p>\n Current GW partners include Novartis, Bayer AG and Almirall. \u00a0Epidoolex is in late-stage clinical development for potential FDA approval as soon as next year (2017) and estimates from investment bankers Cowen & Co. show annual sales may exceed $800 million annually. \u00a0Epidiolex and its clinical development will be pivotal for GW Pharma, as sales of its approved Sativex product in 31 European countries plus Canada have been modest, producing only $2 million in revenue for the latest financial quarter.<\/p>\n The news that GW had hired New York investment bank Morgan Stanley sent GW shares sharply higher on Sept 7 2016 \u2013 with US OTC market price back over $100, representing a daily gain in excess of 20%. \u00a0GWPH came public in May 2014 with an IPO of $10 a share \u2013 so longer term investors have been significantly rewarded by holding shares of the company.<\/p>\n More on this story here: <\/span>http:\/\/www.bloomberg.com\/news\/articles\/2016-09-07\/gw-pharmaceuticals-jumps-on-report-it-may-be-acquisition-target<\/span><\/a><\/p>\n <\/p>\n In other cannabis and cannabinoid pharma news, Insys Therapeutics (NASDAQ: INSY), based in Chandler Arizona donated $500,000 to Arizonans for Responsible Drug Policy, as was reported by the Arizona Capitol Times. \u00a0This donation, five times as large as the next leading donation shows that big pharma wants to keep a damper on any furthering of a botanical cannabis product \u2013 as big pharma pushes for its piece of the overall cannabis pie. \u00a0<\/span><\/p>\n Insys\u2019 only product is an opiate spray to treat pain for cancer patients, known as Subsys, however there are several cannabinoid based drugs in the pipeline, including a formulation of cannabidiol which would be used to treat pediatric epilepsy.<\/p>\n Insys said in a statement that it holds nothing against cannabinoids as long as they are used properly. \u00a0To quote their release in the Arizona Capitol Times: \u201cWe believe that all available medicines should meet the clinical standards set by the FDA.\u201d<\/p>\n An opposing view is presented by J.P. Holyoak, the chair of Arizona\u2019s recreational cannabis legalization effort, who mentioned that Insys is opposing recreational cannabis legalization within the State because this would cut into company profits. Holyoak commented about Insys, \u201cthey want to be able to push their far more addictive, far more harmful and far more dangerous opioid drugs.\u201d<\/p>\n More on this story here: <\/span>http:\/\/mjbizdaily.com\/pharma-firm-fights-az-rec-legalization-measure\/<\/span><\/a><\/p>\n <\/p>\n This week a Business Insider article was published regarding Canada\u2019s citizens who wish to enter the USA \u2013 and the present US Border policy that bars entrance by Canadians into the US who admit to having used marijuana for recreational purposes. \u00a0Thus Canada will ask the US to \u201crethink its ludicrous marijuana policy\u201d, especially in light of potential Canadian nationwide legalization of marijuana for recreational use which is expected to occur during the spring of 2017. \u00a0<\/span><\/p>\n In 2014 a British Columbia resident, Matthew Harvey was stopped at a US Border crossing point in Washington State where US Customs and Border Patrol agents asked him about his recreational marijuana use. \u00a0Harvey, who was 37 at the time and who had a permit to use medical marijuana, said that he smoked cannabis recreationally as a teenager \u2013 was detained and questioned for six hours before being denied entry to the US and barred from further entry.<\/p>\n According to the Canadian Broadcasting Company, Harvey mentioned, \u201cthat I was inadmissible because I admitted to smoking marijuana after the age of 18 and before I received my medical marijuana license.\u201d<\/p>\n In an interview with the CBC, Canadian Public Safety Minister, Ralph Goodale said that the situation needed to be addressed \u2013 particularly in light of uneven marijuana restrictions in the US. \u00a0\u201cWe obviously need to intensify our discussions with our border authorities in the United States, including the Department of Homeland Security,\u201d Goodale said last Thursday Sept 8<\/span>th<\/span> 2016. \u00a0<\/span><\/p>\n He went on to say, \u201cthis does seem to be <\/span>a ludicrous situation<\/strong>\u201d noting that marijuana was legal for both medical and recreational use in Washington State as well as \u201cthree or four other jurisdictions in the US\u201d. \u00a0\u201cThere are certain ironies about the current American position that we will certainly be very vociferous in putting before them,\u201d Canadian Public Safety Minister Goodale added.<\/span><\/p>\n To further reference some of the shortcomings of the two countries\u2019 marijuana policies, Goodale offered this quote: \u201cthe present marijuana regime that has existed now for many years in both Canada and the United States has clearly failed Canadian and American young people because North American teenagers are among the biggest users of marijuana in the western world.\u201d<\/p>\n For review, the US Controlled Substances Act lists marijuana as a Schedule I drug, meaning it has no official medicinal use. \u00a0The U.S. DEA has balked at rescheduling marijuana on several occasions, including efforts that failed to reschedule last month, August 2016. \u00a0However a senior policy adviser to Democratic Presidential candidate Hillary Clinton has mentioned that Mrs. Clinton would reschedule cannabis should she win office \u2013 in order to allow more research to be performed.<\/p>\n In Canada, current Liberal Prime Minister Justin Trudeau campaigned on a promise to legalize recreational marijuana \u2013 a policy stance that won favor of voters in last year\u2019s Canadian election. \u00a0The Trudeau government has said that it will introduce recreational marijuana legalization legislation by the spring of 2017.<\/p>\n\n