New Sales Contract with UK Pharmaceutical Company
London, 5 September 2023 – Celadon Pharmaceuticals Plc (AIM: CEL), a UK-based pharmaceutical company focused on the development, production and sale of breakthrough cannabis-based medicines, announces that it has entered into a new contract for the commercial sale of its cannabis product with a second UK pharmaceutical company customer that the Company anticipates could generate up to £1.2 million in revenue.
The Company anticipates that the first shipment will be made in Q4 2023. The contract will run over a three year term, with both parties retaining the option to extend for a further two years subject to mutual agreement.
In May 2023 Celadon signed its inaugural supply contract with a leading UK medicinal cannabis company. Under the terms of that contract, the company will supply a minimum of £3 million worth of product over the next three years.
Both contract wins underscore demand for domestic product in the UK and further confirm the Company’s belief that UK production has a significant advantage over imported product, which can suffer from a plethora of regulatory and logistical challenges.
The Company continues to receive further expressions of interest in the supply of its pharmaceutical-grade cannabis product, and is currently in discussions to convert these into commercial contracts. With Phase 1 of the facility now fully contracted, the Directors have growing confidence in continuing to expand the production capacity of the site.
James Short, Chief Executive Officer of Celadon, said:
“We are very happy to have signed a second sales contract with a new customer so soon after the first. Demand for our product continues to grow, and converting this interest into commercial sales remains our top priority.
“Customers are choosing to come to Celadon as a trusted provider of UK-produced, high-quality product. Many businesses are facing regulatory and logistical challenges when trying to import medicinal cannabis product into the UK, and therefore are willing to pay premium prices to secure Celadon’s domestically produced product.”
