GW inks $273M deal for Sativex

GW Pharmaceuticals and Japan's Otsuka signed a deal to develop and market GW's cannabis-based drug Sativex in the U.S. GW stands to earn up to $273 million along with royalities from possible sales. The drug developer also gains an upfront payment of $18 million. Sativex has been approved in Canada for patients suffering from multiple sclerosis. In addition, Sativex has completed a successful Phase III trial in Europe for advanced cancer pain. Earlier GW indicated that it would look for a partner to help finance another Phase III trial of the drug.

"This agreement represents a landmark event in the history of GW. Not only have we secured the development and marketing of our lead product, Sativex, in the world's largest market, we have also selected a strategic partner that will allow us to extend our cannabinoid pipeline," GW's chairman Geoffrey Guy said.

- check out GW's release