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GW Pharma, maker of marijuana medicine Epidiolex, raises $345M in public offering

The British company won approval this year from the U.S. Food and Drug Administration for Epidiolex, a medicine based on cannabidiol (CBD). Clinical trials conducted partly at Children's Hospital of Philadelphia showed the drug helped to control some rare forms of pediatric epilepsy.

FILE – This May 23, 2017 file photo shows GW Pharmaceuticals' Epidiolex, a medicine made from the marijuana plant but without THC. Investors are craving marijuana stocks as Canada prepares to legalize pot next month, leading to giant gains for Canada-based companies listed on U.S. exchanges.
FILE – This May 23, 2017 file photo shows GW Pharmaceuticals' Epidiolex, a medicine made from the marijuana plant but without THC. Investors are craving marijuana stocks as Canada prepares to legalize pot next month, leading to giant gains for Canada-based companies listed on U.S. exchanges.Read moreKathy Young, File)
    by Sam Wood
    Updated 
    Published 

GW Pharmaceuticals, the manufacturer of the first U.S.-approved drug derived from marijuana, announced Friday it had raised a $345 million in a public offering.

The British company won approval this year from the U.S. Food and Drug Administration for Epidiolex, a medicine based on cannabidiol (CBD).  Clinical trials conducted partly at Children's Hospital of Philadelphia showed the drug helped to control some rare forms of pediatric epilepsy.

In a first for a cannabis-derived medicine, the U.S. Drug Enforcement Administration last week rescheduled the drug to become a Schedule 5 substance. All marijuana products had previously been considered Schedule 1, a designation given to substances considered to be highly addictive with no recognized medical use. The DEA did not reschedule any other cannabidiol products.

Epidiolex is expected to be available at U.S. pharmacies before the end of the year. GW's other cannabis-derived drug, the peppermint flavored THC and CBD mouth spray branded Sativex, is awaiting approval by the FDA for pain associated with cancer. GW Pharmaceuticals (NASDAQ: GWPH) was trading at $151.47, down about $5.40, Friday afternoon.