The UK Risks Missing Out on the Next $1 Billion Cannabinoid Opportunity

By Melissa Sturgess, CEO of Ananda Pharma

A groundbreaking achievement is flying under the radar. Epidiolex, the first FDA approved cannabis-derived drug developed by GW Pharmaceuticals, is on track to surpass $1 billion in annual revenue—a feat that puts it in the league of blockbuster drugs like Humira and Lipitor. This should be celebrated as a global success story and a key moment for UK innovation, but surprisingly, few companies are following in GW’s footsteps.

As CEO of Ananda Pharma, I am acutely aware of the immense opportunity we have before us. The global cannabis biopharmaceutical market is booming, and the UK is perfectly positioned to lead it. We have the scientific expertise, a supportive regulatory framework, and growing patient demand for cannabis-based therapies. What we lack, however, is the decisive action and investment required to seize this moment. If the UK doesn’t act now, we risk losing our competitive edge—and the next wave of billion-dollar companies will emerge elsewhere.

The GW Pharmaceuticals blueprint

GW Pharmaceuticals proved that plant-based medicines can achieve regulatory approval and commercial success at a global scale. Epidiolex, which targets rare and severe forms of epilepsy like Dravet syndrome and Lennox-Gastaut syndrome, has transformed the lives of patients with drug-resistant epilepsy. In pivotal Phase III trials, it reduced seizure frequency by up to 40%, offering hope where other treatments failed.

Since its approval in 2018, Epidiolex has generated hundreds of millions in sales and is now trending towards $1 billion in annual revenue. It’s approved in over 40 countries, including the UK and across Europe. This success was no accident—it was the result of rigorous science, bold innovation, and a commitment to improving patient outcomes.

However, GW’s journey also highlights a crucial problem for UK companies. Having listed on London’s AIM initially, GW transferred its primary listing to Nasdaq, where it attracted the specialist investors it needed to scale globally. Ultimately, Jazz Pharmaceuticals acquired it for $7.2 billion. While this acquisition validated the potential of cannabis-based medicines, GW‘s relative success in raising capital on the Nasdaq versus AIM underscores the need for a more robust investment ecosystem for high-growth companies in the UK.

We cannot let this happen again.

The opportunity for UK leadership

The UK is uniquely positioned to become a global leader in cannabis biopharmaceuticals. Unlike the United States, where cannabis remains illegal under federal law, the UK legalised medical cannabis in 2018 to enable doctors to prescribe cannabis products to patients. Crucially, the necessary regulatory structures are already in place to encourage further research and development. Companies like mine can focus on developing targeted therapies for complex conditions that traditional treatments often fail to address without being slowed down by legal uncertainty.

There is also growing acceptance of cannabis-based medicines among the medical community.

Epidiolex’s approvals by the FDA and the European Medicines Agency (EMA) were key to this shift. Today, 62% of neurologists report prescribing Epidiolex to their patients, according to a 2022 survey by the Epilepsy Foundation. This shift in perception opens the door for a wider range of therapies.

At Ananda Pharma, we are building on this foundation. We are focused on developing cannabinoid therapies for neurological and inflammatory conditions, our flagship trial being treatment-resistant epilepsy. Our drug candidates—MRX2 and MRX2T—are committed to Phase III clinical trials. But, unlike earlier cannabinoid-based drugs, we are also looking beyond epilepsy, targeting endometriosis and chemotherapy-induced peripheral neuropathy (CIPN). For patients with these conditions, cannabis-based medicines could offer a lifeline, and the UK can lead the way in developing regulatory-approved life-changing therapies.

Overcoming Barriers

Despite the potential of cannabis-based medicines, there are still significant challenges we must address.

1. Funding and investment
   Raising capital for cannabis biopharmaceuticals in the UK is far more difficult than it should be. In 2022, US cannabis-related companies raised over $2 billion, while European firms raised less than £100 million. This funding gap is not because the science is weaker in Europe—it’s simply a matter of investor appetite and awareness. We need to change that narrative.
2. Retaining UK innovation
   We cannot afford to watch another company like GW Pharmaceuticals move abroad to achieve its full potential. If we want to build a thriving cannabis biopharmaceutical sector, we must provide UK companies with the funding, infrastructure, and market support they need to succeed here at home.

The Time to Act Is Now

The UK has a significant opportunity. With the right investment and policy support, we can build a world-class cannabis biopharmaceutical ecosystem—one that delivers life-changing therapies to patients while driving significant economic growth.

The success of Epidiolex is just the beginning. At Ananda Pharma, we are ready to lead the next chapter in cannabis-based innovation.

The question is: Will the UK seize this opportunity?