New contract with European Medical Cannabis company has potential to generate millions for product
Celadon Pharmaceuticals announced today (November 16) that it has secured a new sales contract with an unnamed European medical cannabis company.
The UK-based company is focused on the development, production, and sale of cannabis-based medicines contract is for the commercial sale of its pharmaceutical-grade cannabis product.
The contract has the potential to generate revenue for Celadon of up to £26 million ($32 million) of product (£8.7 million or $11 million annually) over the three-year term, with the first delivery anticipated in the second half of next year (2024). The two parties retain the option to extend the contract for a further two years by mutual agreement.
This latest sales contract follows the two previous UK contracts announced in May and September 2023 respectively.
Celadon says the level of interest in its product from European medicinal cannabis companies highlights, the directors believe, the material benefits of indoor, fully controlled hydroponic cannabis cultivation, and its significant quality advantages over other forms of cultivation, such as glasshouse or outdoor facilities.
The directors also believe that Celadon is one of a limited number of companies globally with the approvals in place to cultivate and manufacture EU-GMP grade high-THC medicinal cannabis.
Celadon continues to receive further expressions of interest in the supply of its pharmaceutical-grade product, and the company is currently in discussions to convert these into commercial contracts.
James Short, chief executive officer of Celadon said: “This is our third sales contract in six months, and our most significant to date. It continues our strong momentum and path to meaningful revenue generation.
“Our customers continue to highlight the multiple challenges they face in securing high-quality product, and this contract validates our strategy of manufacturing to the highest standards of pharmaceutical-grade cultivation and production.
“We are greatly encouraged by the growth we are seeing in UK and European end markets and are well-placed to secure additional contracts in the coming months.”
In August, OSP reported the company had received approval for the roll-out of a non-cancer chronic pain study for up to 5,000 patients. At the time it announced its private pain clinic LVL Health had been approved by the NHS Research Ethics Committee.
The results of its previous study were submitted for review in late 2022 and established positive outcomes for quality of life, pain and sleep, along with decreased opioid usage. It was designed to create a data set to support doctors’ prescriptions of cannabis-based medicines.
Celadon believes all these steps represent a significant advancement in enabling broader options for patients, leading to the widening of the UK cannabis-based medicine market.