Celadon Pharmaceuticals PLC (AIM:CEL) has become the first company registered to produce high-THC medicinal cannabis in the UK
Celadon Pharmaceuticals has obtained a Good Manufacturing Practise (GMP) registration from the UK Medicines and Healthcare products Regulatory Agency (MRHA) allowing its Midlands facility to produce medical cannabis.
Medicinal cannabis, which was legalised in 2018, is currently “reliant on imported product, often facing lengthy delays and high costs,” the company said in its latest statement.
The UK cannabis market is expected to reach a value of £1bln in 2026 while the US industry is currently worth US$9bln, according to research from Prohibition Partners and Global Market Insights.
“The directors believe Celadon has now become one of a limited number of companies globally with the approvals in place to cultivate and manufacture EU-GMP grade high-THC medicinal cannabis,” the British pharmaceutical company added.
Typically, medical cannabis in the UK contains low levels of THC but Celadon added it “is understood to be the first for high-THC API in the UK since medicinal cannabis was legalised in 2018.”
The company requires the Home Office to confirm the approval before it can begin producing the active pharmaceutical ingredients.
The government department’s licence currently allows the organisation to produce test batches of cannabis oil, with seven successful harvests occurring in 2022.
“Whilst there is no guarantee that the Home Office will update the current licence, nor any timeframe for this, the directors are confident that the licence will be updated in due course,” Celadon said.
Celadon’s share price is currently at 55p up around 7% today.
James Short, chief executive officer of Celadon concluded: “This is a tremendous milestone for the company given the significant capital and regulatory requirements in this sector.”