Biotech upbeat on cannabis drug

BIOTECH GW Pharmaceuticals said today it remained committed to winning European approval for its cannabis-based drug - despite a recent setback in the UK.

The company, whose shares halved when UK regulators turned down its appeal over the licensing of Sativex earlier this month, said it had 'absolute confidence' in its prospects.

It came as GW launched the mouthspray in Canada for use by multiple sclerosis sufferers - the first time a cannabis-based medicine has ever been made available to the public.

GW also said pre-tax losses narrowed to £5.1m in the six months to 31 March, from a deficit of £6.9m last time. It described the launch of Sativex in Canada as a 'transforming event', adding: 'We remain committed to securing approval of Sativex across Europe and elsewhere.'

The company said it was well-funded and had designed a programme to ensure it achieved these aims as soon as possible.

GW will have to produce more data before it is granted a licence in the UK to sell Sativex, which is designed for the relief of spasticity (involuntary muscle contractions) in MS sufferers.

Although it said the UK setback was 'disappointing', GW added it could now look forward to generating revenues from the treatment in Canada. 'We recognise and share the profound frustration of MS patients who will have to wait longer before Sativex may be licensed for prescription in the UK,' it added.

Shares in the firm were unmoved at 63½p in mid-morning trading.