Here’s the press release
On Wednesday GW Pharmaceuticals plc (NASDAQ:GWPH) announced the Sativex (nabiximols) licensing agreement held with Otsuka Pharmaceutical Co., Ltd. would come to an end this week. The company will now reacquire the complete ownership of the development and commercialization rights to the product’s U.S. market. Reacquisition of these rights will occur without Otsuka receiving any upfront payment.
An oromucosal spray, Sativex is a formulated extract containing a 1:1 ratio of cannabidiol (CBD) and delta-9-tetrahydrocannabinol (THC). The drug is approved for the treatment of spasticity in patients with multiple sclerosis in 29 countries. In 2007 the original agreement between the two companies gave Otsuka exclusive license for Sativex in the U.S.
“We are pleased to have amicably reached this agreement with Otsuka, which enables GW to develop, seek approval for, and commercialize Sativex in the United States,” said GW CEO Justin Gover. “We have previously conducted several positive Phase 2 and 3 trials for Sativex and believe that this product represents an important new late-stage pipeline opportunity for GW in the U.S. market.”
Otsuka will receive contingent milestone payments from GW Pharma, due upon FDA approval of the drug.