Celadon Pharmaceuticals inks five-year sales contract

2nd Oct 2024 09:37

(Sharecast News) - Cannabis-based medicines group Celadon Pharmaceuticals has inked a five-year sales contract with a newly established healthcare company for the supply of its medicinal cannabis product from its UK facility.

Celadon said on Wednesday that the contract has minimum order quantities, with a value of up to £10.5m over the five-year term, with volumes increasing materially from year one to year three under the terms of the contract.

The AIM-listed group stated cultivation of the products for the minimum order volume for the first supply year of the contract shall commence no later than 12 months from the signing of the contract.

Celadon also noted that the contract win had taken its potential order book up to roughly £40.7m, when combined with a £26.0m European contract announced in November 2023, and the two UK contracts worth £4.2m announced in May and September 2023.

Chief executive James Short said: " We are pleased to have signed this new contract with another key healthcare partner.

"As demand for medicinal cannabis products continues to rise, our focus remains on delivering exceptional quality while increasing our capacity to meet this rapidly growing market."

As of 0935 BST, Celadon shares had rallied 12.0% to 28.0p.

Reporting by Iain Gilbert at Sharecast.com