GW and Otsuka sign cannabinoid R&D deal

UK-based drugmaker GW Pharmaceuticals and Japan's Otsuka Pharmaceuticals have signed a global cannabinoid research collaboration that will develop drugs for central nervous system disorders and cancer. The agreement follows a licensing deal for GW's oro-mucosal pain treatment Sativex that the two firms signed earlier this year (Marketletter February 19).

The new deal, which has an initial term of three years, will see Otsuka provide $9.0 million in funding to cover the cost of work conducted as part of the collaboration. The research team, which will be composed of scientists from both firms, will evaluate a range of GW's cannabinoid drug candidates, with a view to selecting the most promising for clinical assessment.

Development and commercialization of any selected candidate will be paid for by Ostuka, while GW is entitled to a license fee, milestone payments, long-term commercial supply fees and royalties on subsequent product sales. Further financial terms of the accord were not made public.