REG - Celadon Pharma. PLC - New Sales Contract with a Healthcare Company

Celadon PharmaceuticalsAnnouncement

02/10/2024 07:00

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RNS Number : 5330G  Celadon Pharmaceuticals PLC  02 October 2024

Celadon Pharmaceuticals Plc

("Celadon", the "Group" or the "Company")

New Sales Contract with a Healthcare Company

London, 2 October 2024 - Celadon Pharmaceuticals Plc (AIM: CEL), a UK-based
pharmaceutical company focused on the development, production and sale of
breakthrough cannabis-based medicines, is pleased to announce it has signed a
new five year sales contract with a newly established healthcare company for
the supply of its medicinal cannabis product from its UK facility (the
"Contract"). The Contract has minimum order quantities with a value of up to
£10.5 million over the five year term, with volumes increasing materially
from year one to year three under the terms of the contract. The cultivation
of the products for the minimum order volume for the first supply year of the
Contract shall commence no later than 12 months from signing of the contract.
 

Celadon entered into a strategic collaboration with Valeos Pharma A/S, a
Danish EU-GMP cultivator of medicinal cannabis products in September 2024.
This collaboration will allow Celadon to supply to its European customer
(worth up to £26m over three years) from Valeos' Danish cultivation facility
thereby reducing the administrative burden of supplying this customer from the
UK and increasing the capacity of Phase 2 of Celadon's UK cultivation facility
that is able to supply its UK customers.

The Contract will run for an initial term of five years, unless the parties
agree otherwise.

This contract win takes the potential order book for Celadon up to c.£40.7
million when combined with the Group's £26 million European contract
announced in November 2023, and the two UK contracts worth £4.2m announced in
May and September 2023. The Company continues to engage in discussions with
additional potential customers and is confident in securing further
agreements.

James Short, Chief Executive Officer of Celadon, commented:

"We are pleased to have signed this new contract with another key healthcare
partner. Our collaboration with Valeos Pharma A/S has been pivotal in
increasing our ability to supply product to our pharmaceutical and healthcare
customer, enabling us to begin converting our bank of Letters of Intent into
signed sales agreements. This contract represents another key milestone as we
continue to grow and fulfil the demand for high-quality pharmaceutical-grade
medicinal cannabis.

"As demand for medicinal cannabis products continues to rise, our focus
remains on delivering exceptional quality while increasing our capacity to
meet this rapidly growing market."

 

Enquiries:

 Celadon Pharmaceuticals Plc
 James Short                                                Via Sodali & Co

 Jonathan Turner

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

 Global Investment Strategy UK Limited (Joint Broker)
 James Sheehan                                              +44 (0)20 7048 9400

 Sodali & Co
 Elly Williams / Sam Austrums / Nick Johnson                +44 (0)20 7250 1446

 

About Celadon Pharmaceuticals Plc

 

Celadon Pharmaceuticals Plc is a UK-based pharmaceutical company focused on
the development, production 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 an
analytical and R&D laboratory. Celadon's Home Office licence allows for
the commercial supply of its pharmaceutical-grade cannabis product. The Group
owns an 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 licensed
cannabinoid medicine to treat children with Autism Spectrum Disorder.
Celadon has entered into a strategic collaboration with Valeos Pharma A/S to
license certain of its intellectual property relating to facility design and
operation and to assist in the supply of product to its current and potential
European customers.

 

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

 

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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