GW grants US Sativex license to Otsuka as part of cannabinoid R&D alliance

UK drugmaker GW Pharmaceuticals and Japan's Otsuka Pharmaceutical have entered into a long-term alliance which will focus on the development of cannabinoid-based drugs. The firms said that the accord was initiated when GW granted Otsuka an exclusive license to develop and market Sativex, the UK company's oro-mucosal anti-pain spray, in the USA.

Under the terms of the deal, which is subject to Hart-Scott-Rodino clearance in the USA, GW will receive an $18.0 million upfront fee when the deal is signed and could earn up to $273.0 million in milestone payments. In addition, the UK firm will establish a long-term commercial supply contract, and will be entitled to royalties based on product sales. The companies added that they would collaborate on all aspects of development and regulatory filing in the USA.

Specifically, GW will be responsible for developing the product for use in the treatment of pain associated with cancer, with Otsuka agreeing to fund the work. The firms also said that, early last year (Marketletter January 16, 2006), the Food and Drug Administration cleared the drug to enter Phase III trials directly for oncology indications, adding that they plan to initiate the first of these sometime this year.