Celadon sees results of collaboration with Valeos

Celadon Pharmaceuticals announced Thursday collaboration with Valeos, a Danish pharmaceutical company, is active and it’s bringing results.

Celadon said it will enable speeding up the supply of pharmaceutical-grade EU-GMP cannabis Active Pharmaceutical Ingredient (API) products to the customers, including the German medicinal cannabis contract.

The Valeos agreement is expected to provide Celadon with up to 3 tonnes of annual cultivation capacity from their Danish EU-GMP facility, Celadon said. This capacity supports Celadon’s ability to fulfil its commitments under the German supply contract, which is expected to generate up to £26 million in revenue over its three-year term, with £8.7 million annually, the company said.

Celadon said the collaboration is now beginning to deliver tangible results, as the company is raising its first invoice to Valeos as part of this agreement. Moving forward Celadon now anticipates regular revenue to be generated as operations at Valeos’ facility progress and production using Celadon’s genetics and IP scales further, the company said.

According to the press release, the Directors believe that the partnership with Valeos positions Celadon to address the European market’s increasing demand for pharmaceutical-grade medicinal cannabis. With Valeos’ Danish facility now operational and supporting Celadon’s EU-based supply chain, the Company is well-placed to deliver on its current contracts and pursue additional opportunities in the months ahead, driven by the increasing demand for high-quality medical cannabis across the UK and Europe, the company said.

James Short, Chief Executive Officer of Celadon Pharmaceuticals Plc, said: “This is a pivotal moment for Celadon as we see the early results of our collaboration with Valeos come to life. By leveraging Valeos’ cultivation capacity and our proprietary genetics and IP, we will be able to expedite supply to our existing customers, including our key German contract, while simultaneously creating a new revenue stream for the Company.

The successful initiation of this agreement highlights the effectiveness of our strategic approach, using partnerships to expand our production capacity. We look forward to strengthening our collaboration with Valeos and exploring further opportunities to meet the growing demand for high-THC medicinal cannabis across Europe.”