AIM-listed specialty pharmaceutical company GW Pharmaceuticals expects to account for a provision of 0.8m pounds in the financial year ending September 30th 2013 reflecting the impact of a pricing decision on its multiple sclerosis treatment Sativex.
In an operational update issued on Tuesday, GW Pharmaceuticals stated: "For GW's financial year ended September 30th 2013, we expect to account for a provision of £0.8m to reflect the impact of this pricing decision, which we are required to apply to sales in Germany from July 2012, and product sales will be lower than previously expected. Cash and cash equivalents at December 31st 2012 was £27.6m."
In June 2012 the German Federal Joint Committee (G-BA), the national reimbursement authority, determined that Sativex - a plant-derived cannabinoid prescription drug - provided added benefit over current treatment options in the treatment of spasticity in multiple sclerosis.
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After several months of discussions with the National Association of Statutory Health Insurance Funds, GW Pharmaceuticals' subsidiary Almirall said that it attended a meeting with an arbitration board to negotiate a price for Sativex.
The outcome of the meeting, which was communicated to Almirall on Tuesday, was the determination of a price "significantly lower than the reimbursed Sativex price in other European countries," the group reported.
Justin Gover, GW Pharmaceuticals' Chief Executive Officer, commented: "Sativex has an excellent record of achieving appropriate price levels in all other countries to date and we are confident that the ongoing global commercial prospects for Sativex outside of Germany are unchanged".
"Sativex is one of several examples of new medicines that have not been appropriately valued by the German reimbursement system. Almirall is now taking all necessary steps to maintain the success and value of the Sativex franchise across Europe."
GW Pharmaceuticals' share price was up 1.39% to 54.75p at 14:20 on Tuesday afternoon.
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