UPDATE:GW Pharmaceutical Raises $11.2 Million,Great Point Partners Gets Stake

U.K. drug maker GW Pharmaceuticals PLC (GWP.LN) Thursday said it raised $11.2 million from investors including U.S. healthcare fund group Great Point Partners, which requested a significant equity stake.

GW Pharma, which is developing drugs derived from cannabis, said Great Point Partners bought 7.6 million shares in the company at 78 pence a share, a 2% premium to the closing price Wednesday.

The purchase gives Great Point a 5.8% stake in GW.

David Kroin, a founder and co-portfolio manager at Great Point, said the U.S. investor has been following GW "for some time."

GW filed for marketing approval for its lead drug Sativex in May, following success in a phase three trial of the drug treating spasticity in multiple sclerosis patients.

GW said Thursday its biggest shareholder, M&G Investments, a unit of Prudential PLC (PRU.LN), bought another 917,000 shares, also at 78 pence a share.

The company said it will use the money raised for working capital and research spending.

Company Web site: www.gwpharm.com

-By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; [e-mail]