Jazz Pharma to Buy Cannabinoid-Drug Maker for $7.2 Billion (1)

Jazz Pharmaceuticals Plc has agreed to acquire GW Pharmaceuticals Plc, maker of the first drug derived from the cannabis plant to win approval in the U.S., for $7.2 billion in cash and stock.

The price amounts to a premium of about 50% over Cambridge, England-based GW’s closing price on Tuesday. GW’s U.S.-traded shares gained as much as 49% in Wednesday trading, and Jazz shares declined 3.7%.

Under the terms of the proposed transaction, Jazz will pay $220 per GW American depositary receipt, in the form of $200 in cash and $20 in Jazz common stock, according to a statement ...