GW Pharmaceuticals unveils German pricing decision on Sativex

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.

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.

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.

MF

Recommended

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
23 Jan 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
5 Jan 2023
Investing trends to watch out for in 2023: what analysts say
Investment strategy

Investing trends to watch out for in 2023: what analysts say

What are sensible strategies for high inflationary times? We ask analysts to find out.
22 Dec 2022

Most Popular

House prices could fall 30%. Should investors be worried about a repeat of 2008?
Investments

House prices could fall 30%. Should investors be worried about a repeat of 2008?

Some analysts are predicting that house prices could fall as much as 30%, which, when compared to the fact that prices have jumped 28% since April 201…
24 Jan 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Wholesale gas prices are on a downward trajectory, but does this mean lower energy bills later this year?
27 Jan 2023
Council tax increases 2023 – how much more will you pay?
Tax

Council tax increases 2023 – how much more will you pay?

Your council tax bill will go up in April - we reveal the councils that have confirmed what this year’s increase will be.
23 Jan 2023