Celadon Pharmaceuticals PLC on Tuesday said that it has entered a new sales contract with a second pharmaceutical company in the UK, as demand for its product continues to grow.

The London-based pharmaceutical company, which is focused on the research, cultivation, manufacturing and sale of breakthrough cannabis-based medicines, said the contract could generate up to £1.2 million in revenue.

Shipments of Celadon’s cannabis product are expected to begin in the final quarter of this year. 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.

This contract follows the first, which was signed in May. Under the terms of that contract, Celadon will supply a minimum of £3 million worth of product over the next three years.

These contract wins show that UK production has a ‘significant advantage’ over imported product, the firm 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,’ said Chief Executive Officer James Short.

‘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.’

Celadon shares were trading 7.0% higher at 152.50 pence each in London on Tuesday morning.

Copyright 2023 Alliance News Ltd. All Rights Reserved.