PRESCRIPTION POT: MORE THAN A PIPE DREAM?

The Supreme Court's Ruling Against Medicinal Marijuana Isn't Chilling A
British Drugmaker's Plans To Test An Oral Spray In The U.s.

That Supreme Court ruling against the medical use of marijuana wasn't a
total downer for those who want the weed made legal for treating pain and
other ailments. GW Pharmaceuticals, a British company that's developing
medications derived from marijuana, says it's pushing ahead with plans to
start clinical trials in the U.S., with an eye toward bringing the world's
first cannabis-based prescription drug onto the market as early as 2003. In
fact, the company announced plans for an initial public offering on May 14,
only hours before the high court issued its decision.

Geoffrey Guy, founder and chairman of GW Pharmaceuticals, says the ruling
won't affect his company because it's developing "legal pharmaceutical
products" that will be reviewed by government regulators. The Supreme Court
struck down a California law that let marijuana "buyers' cooperatives"
provide the drug to seriously ill people whose doctors say they could
benefit from smoking it. The Court said there was no proof of marijuana's
medical effectiveness -- and Guy agrees. "The 'evidence' has yet to be
proved," he says. "That is why we are having clinical trials."

"POLITICALLY SENSITIVE." Under license from the British government, GW
grows about 15 tons of marijuana a year at secret locations around the
country, then processes it into medicines intended to provide relief from
pain and other symptoms. Advanced clinical trials are already under way in
Britain for one marijuana-based preparation that has shown promise in early
trials for treating symptoms of multiple sclerosis. Canadian regulators
recently approved clinical trials there, too. And Guy says GW is in talks
with the U.S. Food & Drug Administration and Drug Enforcement Agency to
begin trials in the U.S. Although he expects to get the go-ahead, Guy
recognizes, "it's more politically sensitive in the United States."

A movement to legalize marijuana for medical use has gained momentum in
recent years as doctors and patients have reported that the drug eases
pain, tremors, and muscle spasms caused by nervous-system diseases such as
multiple sclerosis, as well as nausea caused by chemotherapy and AIDS.
Voters in eight U.S. states have passed ballot initiatives allowing
patients to obtain marijuana legally if their doctors certify that it's
medically necessary. The California law struck down by the Supreme Court,
for example, allowed state-regulated buyers' cooperatives to distribute the
drug.

But researchers still aren't certain if tetrahydrocannabinol (THC), the
active ingredient in marijuana, actually relieves symptoms -- or if people
simply care less about them when they get high. For now, the Supreme Court
ruled, marijuana "has no currently accepted medical use in treatment in the
United States." The FDA has approved Marinol, a drug based on a synthetic
version of THC, the active ingredient in marijuana. But Marinol's only
approved use is for treating nausea, and its effectiveness is limited
because it comes in pills, which nauseated patients often have trouble
keeping down.

EARLY PROMISE. Enter GW Pharmaceuticals. The preparations it's developing
are sprayed under the tongue, so they're absorbed directly into the body
without the patient having to swallow anything. And the drugs are made from
processed marijuana, so it doesn't produce a high. Early clinical trials
over the past two years in Britain have shown effectiveness in treating
symptoms of multiple sclerosis, arthritis, and cancer.

GW has already raised nearly $15 million from investors since its founding
in 1997. The company is planning a London stock market listing in late June
that could value it as high as $240 million. Proceeds will be used to fund
clinical trials and step up cannabis production to as much as 100 tons a
year. GW says it expects to be profitable as early as 2004. And it's way
ahead of the competition: Guy says it's the only company in the world
legally producing the weed for pharmaceutical uses. So, at least investors
may be able to get a buzz. But for now, medical-marijuana use awaits the
outcome of clinical trials.