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GW Pharma gets cash boost

A re-negotiated agreement gives GW Pharma a profits boost
March 16, 2012

GW Pharmaceuticals could turn a small profit this year after the company re-negotiated a supply agreement with its marketing partner Almirall.

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In return for dropping the price and waiving a €5.5m (£4.5m) milestone payment on the approval of Sativex in cancer pain, GW will now receive a €12m one-off payment. Analysts said the precise impact of the amendment is difficult to gauge because Sativex has not yet been approved for this indication. The main difference is to move payment forward by several years, with a small discount, while giving Almirall exclusive commercial control in countries like Mexico.