Celadon Pharmaceuticals PLC on Thursday announced the first supply of its pharmaceutical-grade high-THC cannabis product to two UK-based unnamed companies with whom it secured contracts earlier this year.

Celadon is a London-based pharmaceutical company focused on the development, production and sale of breakthrough cannabis-based medicines.

This follows the successful completion of its latest harvest from its UK-based facility, which is being used to fulfil its commercial contracts, Celadon explained.

Periodic invoicing has started for the contracts, which were first announced in May and September 2023.

Under the terms of agreement for the first contract, Celadon will sell its product to a minimum value of £3 million over the next three years. At the end of this period, the contract has the option to be extended, should both parties agree.

The first shipment is expected in the fourth quarter of this year.

As for the contract secured in September, Celadon 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.

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

Celadon on Thursday also said it signed an additional commercial contract with a ‘leading European medical cannabis company,’ but did not disclose the name of the firm. The deal has the potential to generate revenue of up to £26 million over the course of three years. First delivery is expected in the second half of 2024.

Chief Executive Officer James Short said: ‘The first supply of our pharmaceutical-grade product is a very significant milestone for both Celadon and the wider industry. It has taken four years of hard work from our incredible team to get here.

‘Celadon’s focus on the highest standards of product quality is essential to meeting the high expectations of our customers, as well as building trust in the UK’s medical cannabis market. Pleasingly, we are already seeing strong levels of demand for our product and, supported by the high barriers to entry for new producers, we remain confident in our long-term growth prospects.’

Shares in Celadon were untraded at 115.00 pence each in London on Thursday afternoon.

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