Second contract secured by cannabis-based medicine developer
Cannabis-based medicine developer Celadon Pharmaceuticals has entered into a second contract for the commercial sale of products.
Celadon, which develops, produces and sells the medicines, anticipates the three-year deal with a second UK pharmaceutical company customer will generate up to £1.2m in revenue, with both parties having the option to extend for a further two years.
The first shipment is set to be made at the end of 2023.
This is the second contract secured by Celadon, after completing its first deal in May with a leading UK medicinal cannabis company. Under the terms of the inaugural deal, the firm will supply a minimum of £3m worth of product over the next three years.
Celadon believes that both of these contracts reveal the demand for UK-produced cannabis medicine, especially as imported products suffer from regulatory and logistical challenges. Further expressions of interest are being received with discussions ongoing to turn these into commercial contracts.
With Phase 1 of the facility now fully complete, the directors say they have growing confidence in continuing to expand the production capacity of the site.
James Short, CEO 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.”
It will now treat up to 5,000 patients as part of the trial through LVL Health, its private pain clinic.
The trial is believed to be the only one of its kind in the UK and is designed to create a data set that will support doctors’ prescriptions of cannabis-based medicines, and in time enable potential reimbursement by the NHS and insurance companies.
