Successful completion of eighth harvest of 2024 On track for fifteen harvest year

London, 16 July 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 the successful completion of its eighth harvest of 2024. 

Celadon’s innovative indoor facility, which utilises modular hydroponic technology, comprises three sets of flowering rooms in each phase. The Group’s ability to control the plants’ growing environment means that it expects to produce 15 harvests per year – with five harvests per year from each set of rooms. The successful completion of the eighth harvest demonstrates that the Group is on course to complete the forecasted 15 harvests this calendar year. 

The yields obtained from the harvests are also increasing in line with management’s expectations as the cultivation environment is adjusted to the different strains’ individual characteristics. Additional yield enhancement developments are in process and are anticipated to further improve yields, in line with Celadon’s commitment to continuous improvement.   

The product produced from these harvests is being supplied to the two UK Pharmaceutical companies with which the Group entered sales contracts, as announced on 24 May and 5 September 2023. These contracts are anticipated to generate revenue of up to £1.4 million per annum. The amount of suppliable product from the first harvests has reduced slightly because some of it will undergo stability testing to demonstrate its quality even after an extended period of time. 

Now that Celadon is in a regular harvesting cycle, with harvests occurring typically every three weeks, the Group is targeting to provide a stable and continued supply of high-grade pharmaceutical product, helping to resolve the current availability issues in the UK, including the delays caused by importing. 

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

"Just over halfway into 2024, we are pleased to announce the successful completion of our eighth harvest this year. Based on our success so far, we remain on track to achieve our forecast of 15 harvests for the year. This milestone underscores the merit of our modular facility design, which enables regular harvests and allows us to manage our production costs effectively, even in the unlikely event of lower-than-anticipated demand. This achievement not only highlights our capabilities as a trusted provider of pharmaceutical-grade cannabis but also positions us as a key UK player in resolving the well-documented supply challenges faced by the UK market."