Cannabis medicine company unveils floatation plans

Investors are poised for a new high on the London market after a company which specialises in cannabis unveiled plans to float today.

GW Pharmaceuticals, the only company to legally develop and produce cannabis-based drugs, is seeking admission to the Alternative Investment Market at the end of June.

The Salisbury-based group was founded in 1998 and has already run clinical trials for treatment of multiple sclerosis, spinal cord injury and rheumatoid arthritis.

It now wants to raise £16m from the listing to expand clinical trials and up its international reach.

Cultivation and production facilities will also be increased - currently it produces 15 tonnes of cannabis in secret locations in the UK per year and aims to increase that to 100 tonnes.

Its MS treatment entered large scale phase III trials this month - if the final tests are successful, legally prescribed cannabis could be available as early as 2004.

Executive chairman Dr Geoffrey Guy believed investor interest would be strong, not only because of the business proposition but because many backers had sympathy with the product.

He added: ‘‘There are very few people who do not know somebody who knows somebody that is already benefiting from this medicine illicitly.’’

Dr Guy also added that the proposed product launch could have wider consequences, commenting that ‘‘the lay debate will always take note of the scientific debate’’.

GW said patients have recorded relief of pain, spasms, spasticity and bladder-related problems after using the cannabis-based products.

The group operates under a Home Office licence permitting it to cultivate, produce, possess and supply cannabis for medical research purposes.