REG - Celadon Pharma. PLC - Inaugural Supply Contract Win

Celadon PharmaceuticalsAnnouncement

24/05/2023 07:00

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RNS Number : 4201A  Celadon Pharmaceuticals PLC  24 May 2023

Celadon Pharmaceuticals Plc

("Celadon" or the "Company")

Inaugural Supply Contract Win

 

London, 24 May 2023 - Celadon Pharmaceuticals Plc (AIM: CEL), a UK-based
pharmaceutical company focused on the research, cultivation, manufacturing and
sale of breakthrough cannabis-based medicines, announces that it has entered
into a contract for the commercial supply of its pharmaceutical-grade high-THC
cannabis product with a leading UK medicinal cannabis company.

Under the terms of the contract, Celadon will sell a minimum of £3 million
worth of product over the next three years, with the first shipment expected
in Q4 2023. At the end of the three years, the contract can be extended for a
further two years with the mutual agreement of the parties.

In addition to this inaugural contract win, Celadon has received multiple
expressions of interest in the sale of its pharmaceutical-grade product. The
Company is currently in discussions to convert these into commercial
contracts, and whilst there is no guarantee around if or when these will
convert, if successful they would be expected to move the Company to a cash
generative position. The discussions include a further contract from the
inaugural customer worth in excess of £7 million of annual supply.

The contract win announced today follows the Company's Good Manufacturing
Practices ("GMP") registration on 16 January 2023, and the update to its Home
Office licence on 14 March 2023. The Directors believe 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 and is understood to
be the first for high-THC API in the UK since medicinal cannabis was legalised
in 2018.

The level of interest in Celadon's product further confirms management's
belief that UK production, combined with indoor, fully-controlled hydroponic
cannabis cultivation, has a significant advantage over imported product, with
the associated frustrations for patients of supply delays and increased cost.

 

James Short, Chief Executive Officer of Celadon, said:

"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.

"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."

 

Enquiries:

 Celadon Pharmaceuticals Plc
 James Short                                               Via Powerscourt

 Arthur Wakeley

 Jonathan Turner

 Canaccord Genuity Limited (Nominated Adviser and Broker)
 Bobbie Hilliam / Andrew Potts / Patrick Dolaghan          +44 (0)20 7523 8000

 Powerscourt Group
 Sarah MacLeod / Nick Johnson / Sam Austrums /             +44 (0)20 7250 1446

 Ibrahim Khalil

About Celadon Pharmaceuticals Plc

Celadon Pharmaceuticals Plc is a UK based pharmaceutical company focused on
the research, cultivation, manufacturing, and sale of breakthrough
cannabis-based medicines. Its primary focus is on improving quality of life
for chronic pain sufferers, as well as exploring the potential of
cannabis-based medicines for other conditions such as autism. Its 100,000 sq.
ft UK facility is EU-GMP approved and comprises indoor hydroponic cultivation,
proprietary GMP extraction and manufacturing and an analytical and R&D
laboratory. Celadon's Home Office licence allows for the commercial supply of
its GMP pharmaceutical cannabis product. The Company's subsidiary, LVL, owns a
MHRA conditionally-approved clinical trial using cannabis based medicinal
products to treat chronic pain in the UK. Celadon also has a minority interest
in early-stage biopharma Kingdom Therapeutics which is developing a licenced
cannabinoid medicine to treat children with Autism Spectrum Disorder.

For further information please visit our website www.celadonpharma.co.uk
(http://www.celadonpharma.co.uk)

This announcement contains inside information for the purposes of article 7 of
the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the
Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication
of this announcement, this information is now considered to be in the public
domain.

 

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