LONDON Hopes faded on Tuesday for an imminent deal for GW Pharmaceuticals lead product, Sativex, with potential U.S. licensing partners, sending its shares down over 9 percent.
The group GWP.L said talks were progressing in line with its expectations and that it had made the announcement in response to market speculation that a licensing deal would be signed in the next few days.
Sativex is GW's drug developed from cannabis for multiple-sclerosis spasticity relief. 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 Britain, Denmark, Spain and the Netherlands in the second half of this year at the earliest, the company said in January.
GW's marijuana plants are grown indoors at a secret location in Southern England.
Shares in GW were down 7.5 percent at 89 pence by 10:35 a.m., valuing the group at around 107 million pounds.