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GW Pharma to test cannabis drug to fight obesity
01.30.07|Reuters

Britain's GW Pharmaceuticals Plc said on Tuesday it planned to start human trials of an experimental treatment for obesity derived from cannabis.

Cannabis is commonly associated with stimulating hunger and several other companies, like Sanofi-Aventis with Acomplia, are working on new drugs that try to switch off the brain circuits that make people hungry whem they smoke it.

GW Pharma, however, says it had derived a treatment from cannabis itself that could help suppress hunger.

"The cannabis plant has 70 different cannabinoids in it and each has a different affect on the body," GW Managing Director Justin Gover told Reuters.

"Some can stimulate your appetite, and some in the same plant can suppress your appetite. It is amazing both scientifically and commercially," he said in a telephone interview.

GW said it planned to start clinical trials of the new drug in the second half of this year. Medicines have to pass three stages of tests in humans before being assessed by regulators in a process that takes many years.

Sanofi-Aventis' Acomplia, which it believes can achieve $3 billion in annual sales, is already on sale in Europe and it is waiting for a U.S. regulatory decision in April

Several other big drug companies also already have similar products to Acomplia in clinical trials.

GW is best known for developing Sativex, a treatment derived from cannabis that fights spasticity in multiple sclerosis patients. Sativex, an under-the-tongue spray, has been approved in Canada, but has hit delays with regulators in Britain.

GW submitted Sativex for assessment by several European regulators in September, and hopes to secure approval for the UK, Denmark, Spain and the Netherlands in the second half of this year at the earliest, the company said on Tuesday.

"In the longer term, Sativex will expand into other EU countries such as France, Italy, Germany and eastern Europe, and this will be a major contributor to revenue,"

GW said revenue for the year ended Sept. 30 was slightly ahead of expectations at 1.98 million pounds, 1.35 million of which came from Sativex.

The firm posted a pre-tax loss of 13.9 million pounds, in line with forecasts. According to a poll of analysts by Reuters Estimates, loss in 2007 will be 13.5 million pounds.

GW's marijuana plants are grown indoors in a secret location in Southern England.

"With a U.S. partnering deal and a European approval both expected this year, we remain very comfortable with our Buy recommendation," said Investec analyst Ibraheem Mahmood said.