Celadon Pharmaceuticals PLC on Wednesday announced it has signed a five-year sales contract with Valeos Pharma AS.

Celadon Pharmaceuticals is a London-based pharmaceutical company focused on the development, production and sale of cannabis-based medicines. Valeos Pharma is a Holeby, Denmark-based pharmaceutical company that produces medicinal cannabis.

Shares in Celadon Pharmaceuticals closed 15% higher at 28.70 pence each in London on Wednesday afternoon.

The contract has minimum order quantities, with a value of up to £10.5 million over the five-year term, and volumes increasing materially from year one to year three.

This partnership will allow Celadon to supply to its European customer, as Valeos Pharma’s Danish base reduces Celadon’s administrative burden for overseas transactions.

The European customer is expected to be worth up to £26 million over the course of three years, taking Celadon’s potential order book up to around £40.7 million.

Chief Executive Officer James Short said: ‘We are pleased to have signed this new contract with another key healthcare partner. Our collaboration with Valeos Pharma has been pivotal in increasing our ability to supply product to our pharmaceutical and healthcare customer, enabling us to begin converting our bank of letters of intent into signed sales agreements. This contract represents another key milestone as we continue to grow and fulfil the demand for high-quality pharmaceutical-grade medicinal cannabis. As demand for medical cannabis products continues to rise, our focus remains on delivering exceptional quality while increasing our capacity to meet this rapidly growing market.’

Copyright 2024 Alliance News Ltd. All Rights Reserved.