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

Three top-notch Asian stocks to buy
Share tips

Three top-notch Asian stocks to buy

Professional investors Adrian Lim and Pruksa Iamthongthong, managers of the Asia Dragon Trust, pick three of their favourite Asian stocks to buy now.
23 Sep 2022
Why you should short this satellite broadband company
Trading

Why you should short this satellite broadband company

With an ill-considered business plan, satellite broadband company AST SpaceMobile is doomed to failure, says Matthew Partridge. Here's how to short th…
23 Sep 2022
Share tips of the week – 23 September
Share tips

Share tips of the week – 23 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
23 Sep 2022
Momentum investing – and why price matters more than anything else
Investment strategy

Momentum investing – and why price matters more than anything else

The recent fashion for momentum investing, with investors piling into expensive growth stocks, is nothing new, says Merryn Somerset Webb. And the dang…
21 Sep 2022

Most Popular

Could gold be the basis for a new global currency?
Gold

Could gold be the basis for a new global currency?

Gold has always been the most reliable form of money. Now collaboration between China and Russia could lead to a new gold-backed means of exchange – g…
22 Sep 2022
Share tips of the week – 23 September
Share tips

Share tips of the week – 23 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
23 Sep 2022
Paypal, bitcoin, and the weaponisation of money
Bitcoin & crypto

Paypal, bitcoin, and the weaponisation of money

Recent events have shown how both business and governments can “weaponise” money and shut down dissent. What to do? Buy bitcoin, says Dominic Frisby.
22 Sep 2022