GW Pharmaceuticals is a UK biotechnology company developing medicinal cannabinoids for use in a variety of conditions including multiple sclerosis, cancer pain and epilepsy. In 2001 the company had an initial IPO in the UK but the stock subsequently fell out of favour with the UK market. It could not generate momentum and liquidity on the basis of its approved product for multiple sclerosis spasticity, exisiting corporate deals and its pipeline.
Abingworth had extensive interactions with management throughout a series of meetings. Due diligence included a site visit to the research facility, multiple expert physician calls, commercial and financial modelling, a sequence of management discussions and enagagement with key board members. As part of the investor outreach efforts, GW targeted an IPO in the US in May 2013. Abingworth was a sizeable supporter in this financing and helped with investor outreach and contact.
Developments since investment
Since we invested, the company has expanded clinical development efforts into refractory paediatric epilepsy. It also increased its communication and investor outreach efforts and, in combination with the US IPO, this resulted in a significant increase in volume and share price appreciation.