Celadon Pharmaceuticals Plc

("Celadon", the "Group" or the "Company")

Product supplied to first two sales contracts

London, 14 December 2023 - 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 first supply of its pharmaceutical-grade product to the two commercial contracts announced on 24 May and 5 September 2023 respectively.

The supply of product follows the successful completion of the Company's latest harvest from its UK-based facility, which is being used to fulfil its commercial contracts. Periodic invoicing has now commenced for both contracts, announced in May and September 2023, the first of which is worth a minimum of £3 million of revenue, with up to £1.2 million of revenue anticipated for the second contract.

Since the announcement of these first two contracts, the Company signed a further commercial contract on 16 November 2023 with a leading European medicinal cannabis company. This latest contract has the potential to generate revenue to Celadon of up to £26 million over three years, with the first delivery anticipated in H2 2024.

These three initial sales contracts follow the Company's receipt of Good Manufacturing Practices ("GMP") registration from the Medicines and Healthcare products Regulatory Agency ("MHRA") in January 2023, and subsequent update to Celadon's Home Office licence in March 2023.

James Short, Chief Executive Officer of Celadon, 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.

"Having achieved our licenses and secured our initial commercial contracts, today demonstrates that we are successfully supplying product and realising revenue.

"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."

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About Celadon Pharmaceuticals Plc

Celadon Pharmaceuticals Plc is a UK-based pharmaceutical company focused on the development, production and sale of breakthrough cannabis-based medicines. Its primary focus is on improving quality of life for chronic pain sufferers, as well as exploring the potential of cannabis-based medicines for other conditions such as autism. Its 100,000 sq. ft UK facility is EU-GMP approved and comprises indoor hydroponic cultivation, proprietary GMP extraction and an analytical and R&D laboratory. Celadon's Home Office licence allows for the commercial supply of its pharmaceutical-grade cannabis product. The Group owns an approved clinical trial using cannabis-based medicinal products to treat chronic pain in the UK. Celadon also has a minority interest in early-stage biopharma Kingdom Therapeutics, which is developing a licensed cannabinoid medicine to treat children with Autism Spectrum Disorder.

For further information please visit our website www.celadonpharma.com

This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement, this information is now considered to be in the public domain.