London, 20 February, 2007 –Life sciences lawyers in the London office of Morrison & Foerster advised GW Pharmaceuticals plc, an AIM-listed pharmaceutical research and development company, on a major long-term strategic cannabinoid alliance with Otsuka Pharmaceutical Co., Ltd. 

Under the terms of the license agreement, GW has granted Otsuka an exclusive license to develop and market Sativex®, GW’s lead product, in the United States.  Sativex is a novel prescription pharmaceutical product derived from components of the cannabis plant. 

The financial terms of the agreement include total milestone payments to GW of up to $273 million as well as a long-term commercial supply price and royalty.  Otsuka will pay GW a signature fee of $18 million.  In addition, Otsuka will bear the costs of all U.S. development activities for Sativex in the treatment of cancer pain, additional indications, and future formulations.  GW will be responsible for the manufacture and supply of Sativex to Otsuka.

The agreement is subject to Hart Scott Rodino clearance in the U.S.

The Morrison & Foerster team on this transaction was led by partner, Julian Thurston, and included associates Tara Sherbrooke and James Ryan.

Julian Thurston commented, “This strategic alliance with Otsuka is a significant milestone for GW, securing them access for Sativex into the U.S., the world’s largest market.”

In 2006 Morrison & Foerster also advised GW on a $90 million collaboration with Spanish pharmaceutical company, Almirall Prodesfarma, S.A., to market Sativex in Europe (excluding the UK).