Butt Nawan CBDX

HANetf : Jazz Pharmaceuticals Plc agrees to acquire GW Pharmaceuticals Plc for $7.2 billion

HANetf :  The Medical Cannabis and Wellness UCITS ETF is Europe’s first ETF focused on cannabis.  The fund trades in London under CBDX and in Germany as CBSX and is passported for sale across Europe.

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Nawan Butt, Portfolio Manager of The Medical Cannabis and Wellness UCITS ETF

It has focused on the medical side of Cannabis with pharmaceutical companies such as GW Pharma at the core of its portfolio – it accounts for around 14% of the fund’s holdings.

Nawan Butt, Portfolio Manager of The Medical Cannabis and Wellness UCITS ETF, said: “GW Pharmaceuticals PLC is a UK based company that made history by getting the first FDA approved drug derived from Cannabis.  Their drug, Epidiolex has changed the lives of many living with epilepsy, and they are building out a platform looking at other areas.

When they started most global pharma companies were hesitant to do work with this plant ignoring centuries of evidence there were some health benefits.  As times are changing and attitudes adjusting, more and more companies are getting involved with the sector.  

Today could be a notable turning point as a more traditional pharma company, JAZZ pharma, has agreed to purchase GW Pharma for over $7B.   We don’t think this is the last deal we will see in the sector.

“One of the sectors that benefited the most from the US results was Cannabis.  The sector is still in the early phase of its growth to becoming a more mainstream Consumer and Healthcare category and with the Democrats in power we expect the move towards legalization in the US to speed up. With is reality becoming more widely appreciated we have seen many of the US recreational focused cannabis names do extremely well over the past month.  But now the focus of the sector could switch to the medical side.

Today’s events should draw attention to other companies doing work in this sector and the opportunities they are exploring.”


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