Celadon will sell a minimum of £3m worth of the high-THC product over the next three years
Celadon Pharmaceuticals – a company focused on researching cannabis-based medicines – has announced that it has secured a contract for the commercial supply of its pharmaceutical-grade cannabis product with a UK medicinal cannabis company.
As part of the agreement, Celadon will sell a minimum of £3m worth of the high-THC product over the next three years. The initial shipment is expected to be made towards the end of 2023, while the contract could be extended for a further two years with the mutual agreement of the parties.
The milestone contract follows the company’s Good Manufacturing Practices registration in January and the update to its Home Office licence, also from earlier this year.
Directors at Celadon believe that it is one of a limited number of companies globally with the approvals in place to cultivate medicinal cannabis and that the company is the first understood to produce high-THC medicinal cannabis since it was legalised in the UK during 2018.
Meanwhile, Celadon has revealed that it has received further interest in the sale of its cannabis product for medical purposes. Indeed, the company is now in discussions to establish other commercial contracts which. The negotiations include a potential contract worth in excess of £7m of annual supply.
James Short, chief executive officer of Celadon, was encouraged by the company’s commercial progress: “We are delighted to have entered into a sizeable first contract so soon after achieving GMP certification in January. It builds on the positive momentum we are seeing across the business and is testament to the hard work of our employees.”
He added: “Demand for our product continues to grow, as we deliver on our strategy of being a leading pharmaceutical cannabis company. We remain focused on converting expressions of interest into commercial contracts and have recruited a highly experienced pharmaceutical business development director to drive this.”