REG - Celadon Pharma. PLC - Update on Strategic Collaboration

Celadon PharmaceuticalsAnnouncement

16/01/2025 07:00

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RNS Number : 4714T  Celadon Pharmaceuticals PLC  16 January 2025

Celadon Pharmaceuticals Plc

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

Update on Strategic Collaboration with Danish Company

London, 16(th) January 2025 - 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 provide an update
on its strategic collaboration with Valeos Pharma A/S ("Valeos") and its
progress in meeting European supply commitments.

Following the announcement of our strategic collaboration with Valeos on 11
September 2024, we are pleased to confirm that this agreement is now actively
contributing to Celadon's operations. The collaboration with Valeos, a Danish
pharmaceutical company, will enable us to accelerate the supply of
pharmaceutical-grade EU-GMP cannabis Active Pharmaceutical Ingredient (API)
products to our customers, including the German medicinal cannabis contract
announced on 16 November 2023.

The Valeos agreement is expected to provide Celadon with up to 3 tonnes of
annual cultivation capacity from their Danish EU-GMP facility. This capacity
supports Celadon's ability to fulfil its commitments under the German supply
contract, which is expected to generate up to £26 million in revenue over its
three-year term, with £8.7 million annually.

The collaboration is now beginning to deliver tangible results, with Celadon
raising its first invoice to Valeos as part of this agreement. Moving forward
Celadon now anticipates regular revenue to be generated as operations at
Valeos' facility progress and production using Celadon's genetics and IP
scales further.

The Directors believe that the partnership with Valeos positions Celadon to
address the European market's increasing demand for pharmaceutical-grade
medicinal cannabis. With Valeos' Danish facility now operational and
supporting Celadon's EU-based supply chain, the Company is well-placed to
deliver on its current contracts and pursue additional opportunities in the
months ahead, driven by the increasing demand for high-quality medical
cannabis across the UK and Europe.

James Short, Chief Executive Officer of Celadon Pharmaceuticals Plc,
commented:

"This is a pivotal moment for Celadon as we see the early results of our
collaboration with Valeos come to life. By leveraging Valeos' cultivation
capacity and our proprietary genetics and IP, we will be able to expedite
supply to our existing customers, including our key German contract, while
simultaneously creating a new revenue stream for the Company.

The successful initiation of this agreement highlights the effectiveness of
our strategic approach, using partnerships to expand our production capacity.
We look forward to strengthening our collaboration with Valeos and exploring
further opportunities to meet the growing demand for high-THC medicinal
cannabis across Europe."

 

Enquiries:

 Celadon Pharmaceuticals Plc
 James Short                                                                                    Via Powerscourt

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

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

 James Sheehan

 Powerscourt Group
 Sarah MacLeod / 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.

 

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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