GW Pharmaceuticals share price dived this morning after a Sunday newspaper claimed GlaxoSmithKline had pulled out of talks to license the companys cannabis medicines. But insiders claim the news is ancient history and is an cynical attempt by an undisclosed party to push the share price down and make it cheaper to buy.

Stock fell 8% to 161p in early trading on Monday and GW Pharmaceuticals was forced to issue an RNS statement in response. The company insists it is still on track to sign its first commercial partnership in the first half of 2003 and to submit its regulatory application to the Medicines Control Agency during the first quarter of 2003.

Many of the mornings trades were sells by retail investors. However stock recovered quickly after institutions bought in.

The Sunday Telegraph said yesterday that GWs chairman Geoffrey Guy had been in discussions with the drug giant to license out its pain relief drug for MS sufferers for an upfront payment of 20 million and royalties of 20-30% but GSK had abandoned the talks. The story did not appear in any other newspaper.

An insider said: GSK were extremely close to signing up and put in a lot of money but the deal fell over for political reasons to do with the US. But this is all ancient history. Other negotiations are going swimmingly. Whoever is behind the story in the Sunday Telegraph probably has an interest in pushing down the shares so they can buy in and get a pretty good return when a licensing deal is signed.

GWs managing director Justin Gover refused to confirm or deny whether GSK had been involved in talks with the company. We do not know the source of the story but its frustrating for us and its difficult to respond to speculation, he said. But were not just looking at one company and one deal.

Analysts failed to balk at the Telegraph story, which they described as irrelevant.
'I would have been surprised if theyd signed a deal with Glaxo, said Dr. Julie Simmonds, analyst at Evolution Beeson Gregory. It doesnt fit in with the style of the management because theyd have to give up control.

House analyst Dr. Jonathan Kwok at Collins Stewart was philosophical. It doesnt make me concerned. If when Antisoma was in discussions with Roche deals with other companies had fallen over, would it have made any difference? When the deal was announced the share price still doubled.

GW still has a healthy 20 million in the bank and, market rumours aside, a licensing deal should provide welcome upside for the share price.

the spanish are taking this on in 1 region by demand of the people ,it seems like a good way around the political mess with a cannabis based treatment.stop the need of a lot of people haVing to put money in the hands of scum (drug dealers).if this co can get a reVenue stream going they should start a rise to there old highs .i bought at 122.5 back in april on the news of there canada aproVal ,going to get in at these lows see if i can bridge that gap.

nice rise today goVernment to allow sale in briton ,didnt buy yesterday there was a bit of pull back thought may of got in cheaper ,going to try on any dip but we are geting good news this co should keep moVing up.

still moVe up now going to be released in briton telegraph haVe aVoid rec on this any more holders out there.

Yes, celby - needs to move up a fair bit before I am in profit though!

If approved, it has to be a winner; arthritis/ms sufferers in real pain often
cannot tolerate conventional pain killers. I believe this is a spray which will be much gentler on the stomach. Keeping my fingers crossed!

someone must haVe giVen this a good mention rising today it should keep going as more market open.

upward again today - could more good news be out soon?

15% more today broke the pound barier and held this product is going worldwide with them or they may get taken oVer its to big and to useful to stop now 240 or there about was its top its good for that again just need some more cash for working capital.

early rise today the battle is on plenty of people taking there profits today its come nearly 100% from lows.

Drugs Minister Paul Goggins has allowed imports of Sativex to satisfy its prescription to individual patients in the UK as an unlicensed medicine. Expect soon that GWP will be allowed to supply direct from UK soon. That will improve GWP cash flow.

UK, European and US approvals are also events to be expected. As are negotiations with major drugs company for distributions in areas not allocated to Bayer. GWP must be holding back on these to maximise deals.

GW has also developed a novel, secure and tamper-proof means of dispensing drugs. The technology provides high levels of security for dispensing drugs, whilst also enabling clinicians to remotely monitor and, if required, remotely control drug usage in real time This has not been highlighted for some time.

I wonder how many people read this thread. Perhaps the title is out of date. Comments please if a new thread should be started. Suggestions for a new name would be appreciated. Also any insights to what is happening and as to where the share price might go.

GW Pharma expands in Europe

GW Pharmaceuticals has signed up Spanish group Almirall to market its cannabis-based pain relieving drug Sativex in Europe.

The deal, which excludes the UK, will give GW a 'significant share' of long term product revenues and possible milestone payments worth up to 46m, including a 12m signing fee.

The payments are contingent on the successful completion of ongoing pivotal final stage phase III trials, regulatory approvals and the achievement of sales targets.

Privately-owned Almirall is Spain's largest pharmaceutical company.

Sativex, which is administered via a spray into the mouth, is in phase III trials for the treatment of Multiple Sclerosis symptoms, neuropathic pain and cancer pain.

Under the agreement GW will complete those trials, but GW said it expects to collaborate with Almirall on the development of Sativex in other indications, which the Spanish group will help pay for.

The signing fee boosts GW's cash pile to 22m.

'As one of the leading specialist European pharmaceutical companies, Almirall is exactly the profile of partner that we have been seeking for Sativex,' chairman Dr Geoffrey Guy said in a statement.

'GW's commercial strategy is to maximise the value of Sativex by retaining a significant interest in revenues from product sales whilst at the same time generating sizeable cash payments in the short term to meet GW's financial requirements.

'The terms of this agreement reflect the merits of this strategy,' he said.

Up 15.5 to 133 on this news. There is more good news to come.

good news but a lot of selling we are held to this aproVal of final trials again ,been here with some other co .we were already selling in spain more countrys would follow.

any reason for this sharp drop? can not find any news on gwp

A verdict has been delivered on the court case.

Hambi posted this over on ADVFN.

"Rene was admitted to hospital on 28 October died March following year. she suffered an idosyncratic reaction (don't know about spelling) to the trial drug (sativex) and this was at least in part a significant factor in her subsequent illness which was in part a result of inmobility"

me neither, could be profit taking tiggered stop losses .or a bad writeup about the new contract

By the way, this is the court case in question:
http://www.timesonline.co.uk/article/0,,8122-1922744,00.html

Slightly updated story (again courtesy of ADVFN):

I have spoken to the coroner and he read out the report to me - a very pleasant gentleman once I had honestly told him my interest in the report. He said the press have been continuously phoning him.

Slighly paraphrased because I couldn't write quickly enough:

Her immobility was caused by an idiosyncratic reaction to a combination of medications including a drug under trial.

Sativex is not mentioned specifically.

bit of moVe up on these ,shares mag had a take profit rec on these last week only because they haVe doubled . the seems to be no case from inqeust result

nice rise today looking at the chart next leVel if we keep going should 168 -170.there has been a big sell last 2 days on closing 130k ,any one know when phase 3 trial due for completion, could be close if aproVed this co will add 100%.

any reason for today's drop?