GW CLAIMS ADVANCE IN FIGHT AGAINST HEROIN

GW Pharmaceuticals, which holds the only UK licence to develop
cannabis-based medicines, has developed a device to deliver methadone that
could save the Government millions of pounds.

The company, which reported full-year figures, said the development of the
device is being backed by the Home Office, and that it could be in addiction
centres across the country within five years.

Dr Geoffrey Guy, chairman of the company, said the device contains a chip
that monitors the use of methadone or, later, diamorphine for recovering
addicts. The drugs come in a sealed container and can only be activated by
contact with the base unit.

"Of course, it would be possible to saw through it, but the canisters must
be returned to the pharmacist for repeat prescriptions and then they would
know it is being abused," Dr Guy said.

Currently, recovering addicts have to be supervised in their use of these
dangerous substances. GW's tamper-proof device would cut the immense cost of
these programmes. Dr Guy said that the device could double the number of
people treated with methadone in the next 36 months.

Justin Gover, chief executive of GW, said that the company would happily
licence out the device to other drugs companies and said it could
theoretically be used to deliver everyday drugs such as paracetamol, which
causes irreparable liver damage when taken in large numbers over a short
period.

The device can also be connected to the internet so doctors can monitor
their patients' progress, or a pharmaceutical company could recall a faulty
batch of drugs by simply locking out patients.

"Immense care is taken to make pharmaceuticals the best quality they can
be," Mr Gover said. "However, we have no control over what happens to them
once they leave the chemists."

The GW programme will not be funded by the Government but Dr Guy said that
it had been judged "worthy of funding", and that some talks were continuing
over the possibility. "We've not put that into our figures," he added.

GW also reported six-month figures, showing a loss in line with expectations
of UKP5.3m. The company had UKP21.1m cash at the end of March and is burning
UKP1m a month.

Mr Gover said that GW has no current licensing arrangements for any of its
products with big pharmaceutical groups but that it is now in talks with
"major international companies", which it was not taking part in at the
beginning of the year. "Nothing is imminent," he added.

Several of the group's products are in Phase III clinical trials, including
a carribinoid extract for cancer pain, and one for multiple sclerosis.
British regulators are expected to consider whether to give the green light
to GW's cannabis-based medicines during 2003. The company's shares remained
unchanged at 111p.