JAZZ - 4 Green Flags For Jazz Pharmaceuticals' Buyout of GW Pharmaceuticals
Pot investors are hardly strangers to splashy mergers and acquisitions. And following the big news about Aphria and Tilray combining their companies , there's a new deal that's making waves in the cannabis sector. On Wednesday, Jazz Pharmaceuticals (NASDAQ: JAZZ) announced it's buying GW Pharmaceuticals (NASDAQ: GWPH) for $7.2 million.
There are 36 U.S. states where medical marijuana is legal, so it seems obvious that medical-use cannabis has a huge upside. What may be less obvious, though, is that there's plenty of growth expected in the pharmaceutical use of marijuana. The plant has active ingredients called cannabinoids that are said to have a broad range of medical benefits. Annual revenues from cannabinoid-based pharmaceuticals are expected to grow to $50 billion by 2029, according to Statista Research. No wonder Jazz wants to get in on the hype. Here are four reasons why the deal makes sense, at least for Jazz:
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4 Green Flags For Jazz Pharmaceuticals' Buyout of GW Pharmaceuticals