Celadon Pharmaceuticals PLC (AIM:CEL) climbed nearly 5% in early trade on Wednesday after the company unveiled the first contract for the commercial supply of its pharmaceutical-grade high-THC cannabis product and revealed it is in talks with further potential customers.
The contract with a leading UK medicinal cannabis company is worth at least £3mln over the next three years, with the first shipment planned for the fourth quarter of this year, Celadon said in a statement. The contract may be extended for a further two years, if the parties agree.
"We are delighted to have entered into a sizeable first contract so soon after achieving GMP [Good Manufacturing Practices] certification in January,” commented Celadon chief executive officer James Short. “It builds on the positive momentum we are seeing across the business.”
Celadon said it has received many expressions of interest in its pharmaceutical-grade product and is holding talks to convert these inquiries into commercial contracts, including discussions on a further order from the inaugural customer worth over £7mln of annual supply.
"Demand for our product continues to grow, as we deliver on our strategy of being a leading pharmaceutical cannabis company,” Short added. “We remain focused on converting expressions of interest into commercial contracts and have recruited a highly experienced pharmaceutical business development director to drive this."
At 9.50 am, Celadon shares were 4.92% higher, changing hands at 160.00p, having reached 169.50p in opening trade.