Unaudited Interim results for the six months ended 30 June 2023

Celadon Pharmaceuticals plc (“Celadon” or the “Company” or the “Group”)

Unaudited Interim results for the six months ended 30 June 2023

London, 28 September 2023 – Celadon Pharmaceuticals Plc (AIM: CEL), a UK-based pharmaceutical company focused on the development, production and sale of breakthrough cannabis-based medicines, today announces its unaudited condensed interim results for the six months ended 30 June 2023.

Strategic and operational highlights

·           Registration of the Group’s Midlands facility with UK MHRA for GMP manufacturing of its cannabis Active Pharmaceutical Ingredient (API)

·           Home Office licence successfully updated to allow commercial sale of the Group’s high Δ-9 tetrahydrocannabinol (THC) product

·           Successfully completed 7 harvests from Phase 1 grow facility. Further progress made on development and fit out of Phase 2, and certain works undertaken on Phase 3 facility ahead of schedule

·           Inaugural £3m product sale over three years to a leading UK Medical Cannabis company - first shipments anticipated in Q4 2023

·           Second product sales contract on a three-year term with option to extend for a further two years - fully contracting Phase 1 grow facility with expected revenue generation of up to £1.2m

·           Receipt of approval from the NHS Research Ethics Committee to roll out LVL Health’s non-cancer chronic pain trial for up to 5,000 patients (post-period)

Financial highlights for the period

·           Revenue of £8.0k (30 June 2022: £11.0k)

·           Operating loss of £3.2 million (30 June 2022: £2.0 million)

·           Loss before tax of £4.4 million (30 June 2022: £13.5 million)

·           Cash balance as at 30 June 2023 of £1.6m (30 June 2022: £9.1 million)

·           Committed credit facility for £7.0m signed with a 2-year term, providing additional balance sheet flexibility

James Short, CEO of Celadon, commented:

“The period has been one of strong operational and strategic progress against the ambitious targets we set out at the beginning of 2022 and ahead of the Company’s admission to AIM. While the UK market for cannabis-based medicinal products is early in its development, we are increasingly optimistic around the medium to long-term sector outlook and the prospects for Celadon within this market.

“Having successfully obtained our Home Office licence to sell the Group’s EU-GMP pharmaceutical cannabis products, we have since signed our first two contracts with UK pharmaceutical companies and have received multiple expressions of interest that we are working hard to convert. The commercial pipeline demonstrates the high demand for high-quality UK produced product and our ability to attract premium pricing; it also gives us confidence to further roll out capacity to support this demand.

“I am grateful for the continued support shown by our shareholders as we pursue our primary mission of improving the quality of life for patients most in need.”

Analyst briefing: 10.00am BST today

James Short (Chief Executive Officer), Jonathan Turner (Chief Financial Officer) and Arthur Wakeley (Managing Director), will host a virtual analyst presentation followed by a Q&A session at 10.00am BST today.

Analysts wishing to join should register their interest by contacting Powerscourt at celadon@powerscourt-group.com, or by calling +44 (0) 20 7250 1446.

A copy of the presentation will be published on the Company’s website at www.celadonpharma.co.uk

Investor Presentation: 3.30pm BST today

Management will be hosting a live presentation and Q&A session today at 3.30pm BST via the online platform Investor Meet Company.

Investors can sign up to Investor Meet Company for free and attend the presentation via the following link: https://www.investormeetcompany.com/celadon-pharmaceuticals-plc/register-investor

Questions can be submitted pre-event and at any time during the live presentation via the Investor Meet Company platform.

Enquiries:

Celadon Pharmaceuticals Plc

James Short                                                                                                        Via Powerscourt

Jonathan Turner

Arthur Wakeley