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Actionable news in GWPH: GW Pharmaceuticals Plc,

GW Pharma Is Getting Too High

The market is getting a little too baked on the combination of pot and biotech buyout speculation.

GW Pharmaceuticals develops a non-psychoactive drug extracted from marijuana for rare seizure disorders. Impressive recent late-stage trial results for its drug Epdiolex have sent the U.K.-based company's stock soaring this year. The company is preparing to file for FDA approval of the drug in the first half of 2017.

The company has hired bankers after getting buyout interest, Reuters reported Wednesday, sending shares up nearly 24 percent and giving GW a $2.6 billion market value. Cantor Fitzgerald analysts in a note suggested a bidding war could push the takeover value into the realm of $165 a share (from around $107 now).

The stock cooled slightly on Thursday, rising a mere 4 percent. It could stand to get cooler.

As most takeover speculation is wont to do, the furor around GW will likely (ahem) go up in smoke. The company makes for a risky acquisition even by biotech standards, with Epdiolex's prospects still murky. And it's no bargain at the moment.

GW's first marketed cannabis drug...