GW says Canada backs cannabis drug for cancer pain

By Kerstin NeuberTue Jun 19, 5:51 AM ET
A pioneering cannabis-based drug will be considered by Canadian regulators for approval as a treatment for cancer pain, its British developer GW Pharmaceuticals Plc said on Tuesday.
The drug called Sativex is an under-the-tongue spray which is already on sale in Canada as a treatment for pain in multiple sclerosis, but GW sees another promising market for the drug as a means of controlling pain associated with cancer.
GW said it is required to accept conditions from Health Canada within 30 days, after which the regulator would finalize its marketing authorization within another 30-day period. The drug is being marketed in Canada by Bayer AG.
Investec analyst Ibrahim Mahmood said he did not expect Canadian approval of Sativex for cancer pain to generate significant sales, but it served as a promising signal for approvals in larger markets.
He reiterated his "buy" recommendation on GW stock with a target price of 244 pence, more than 160 percent above current levels. GW shares rose as much as 5 percent to 92-1/2 pence, valuing the firm at 108.7 million pounds ($215.8 million).
"The evidence continues to mount inexorably across the board both clinically and commercially in support of Sativex," Mahmood said in a note.