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UK based Celadon Pharmaceuticals PLc has entered a strategic collaboration with Danish Company Valeos Pharma A/s to accelerate production and supply of Medical Cannabis Products

UK-based Celadon Pharmaceuticals Plc has entered a strategic collaboration with Danish company Valeos Pharma A/S to accelerate production and supply of medical cannabis. Celadon is a pharmaceutical company focused on the development, production and sale of breakthrough cannabis-based medicines with primary focus on improving quality of life for chronic pain sufferers as well as exploring the potential for other conditions such as autism.
When 14.11.2024
What
Medical cannabis Life Sciences

Celadon and Valeos have entered an agreement whereby Valeos will support Celadon in accelerating its supply of pharmaceutical-grade EU-GMP cannabis Active Pharmaceutical Ingredient (API) products to European customers. Celadon is licensing certain of its genetics for cultivation by Valeos in Denmark and will also share its knowledge and expertise in facility design, cultivation techniques and operating processes. The goal is to assist Valeos increase the yield and quality of cannabis grown in their cultivation rooms by up to 100% to estimated 3 tonnes annually. In return, Celadon will receive 50 per cent of the increased contribution settled annually either in cash or as equity in Valeos.

Valeos currently produces an estimated 1.5 tonnes annually of pharmaceutical grade medical cannabis API and is already supplying to customers in Europe’s largest market Germany as well as other European countries. 

The strategic collaboration will run for at least five years with an option to extend. Celadon also plans to establish a Danish subsidiary, with plans to service the growing European demand with the benefit of a significantly simpler EU-based supply chain once Celadon obtains the appropriate licenses from the Danish Medicines Agency.

 
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We are delighted to have formed this strategic collaboration with Valeos in Denmark. We have been impressed by what its team has achieved and by its rigorous approach to pharmaceutical standards. This agreement increases the current capacity of Celadon by up to 20 times by using Valeos’ as our outsourced manufacturing partner, enabled by Denmark’s favourable framework for medical cannabis production and exports. 

In turn we will share our expertise with Valeos that is our cultivation know-how and practices as well as leading pharmaceutical cannabis genetics – and we are pleased to have created this very mutually beneficial partnership for both companies as well as medical cannabis patients across Europe.

Invest in Denmark provided us with an exceptional service sharing their comprehensive knowledge of the sector, and insight into the performance and growth potential of different companies. The team also facilitated valuable introductions to potential partners and professional sector services such as banks and lawyers, as well as doctors for future potential collaboration around clinical trials in Denmark.

James Short CEO Celadon Pharmaceuticals PLC.
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For a listed company like Celadon, it has been central that we have an EU-GMP certification from the Danish Medicines Agency, because the agency has a good reputation internationally. In addition, it was a requirement that from the start we could fulfill the role of an extremely reliable supplier of cannabis with a consistent, high level of quality. Finally, it was crucial that we had the opportunities, the money and the space to expand our production so that we can quickly reach a very high production volume.

There is no doubt that the market for plant-based medicines will grow significantly in the coming years and that we will be part of that growth. Our strategy is to gradually work towards developing, producing and distributing finished cannabis-based medical preparations. The agreement with Celadon is an important step in that direction. But the best thing about the new agreement is that we can contribute to an even greater extent so that patients in need of medical cannabis throughout Europe can get the medicine they demand.

Morten Snede CEO of Valeos Pharma.

Invest in Denmark's Services

Invest in Denmark provided strategic advice and counselling, assisting Celadon Pharma throughout the process with information about the regulatory landscape and ecosystem for medical cannabis in Denmark, including assistance in establishing contact to potential JV partners. Invest in Denmark also helped clarify information about import/export of medical cannabis for commercial use in Denmark and helped introduce Celadon to relevant service providers, such as law firms and banks as well as research networks including KOLs/medical staff for potential further research collaborations or clinical trials.
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"We welcome this strategic agreement and collaboration between Celadon Pharma and Valeos Pharma that will ultimately benefit medical cannabis patients across Europe. Denmark’s framework for medical cannabis production was designed based on high GACP and EU-GMP standards within a strict medical and pharmaceutical framework and with no cap on production volumes, making Denmark an attractive location to produce high quality cannabis-based medicines also for export to Germany and other European countries. We look forward to continue to assist Celadon Pharma as they explore opportunities also for potentially conducting clinical trials in Denmark and are pleased to add their valuable know-how and expertise to the help further strengthen the Danish medical cannabis industry and ecosystem."
Vanessa Vega Saenz Director, Invest in Denmark.

About medical cannabis in Denmark

  • The Danish medical cannabis industry started in 2018 and has since attracted considerable international investment as a top location for production, development and exports due to its proximity to main EU markets including Germany with excellent infrastructure for exports and transport. 

  • Denmark has no medical cannabis production cap or quotas and offers attractive framework conditions with strong government support for medical cannabis and a transparent regulatory regime.  

  • In 2022, the Danish government established a permanent framework for medical cannabis production. The permanent framework has reduced investment risk, and led to a rapid expansion of production activity in Denmark. At the same time, the new framework unlocked new opportunities for the development of new plant genetics and API production.

  • Denmark uses an open-ended system with no limits on the number of cultivators, as long as high pharmaceutical standards are maintained and no cap on production volumes. This allows the industry to grow to a European and global scale based on high GACP and EU-GMP. 

  • In addition to cultivation, Denmark continues to attract investment in plant breeding and genetics, testing and analysis, innovative cultivation methods and technologies, extraction, formulated product development, while opportunities exist to invest in further applied research and development and clinical studies. This is the stage where medical cannabis meets the traditional pharmaceutical sector.

  • Denmark benefits from a strong domestic medical cannabis ecosystem with close collaboration across all parts of the value chain from plant to patient, a strong plant genetics and breeding ecosystem, access to reliable green power at a low cost, access to expertise in pharma production including availability of expertise in developing GMP compliant facilities and processes. 

  • Denmark also offers a well-funded healthcare system providing partial reimbursement for medical cannabis based products and an efficient retail pharmacy network for product distribution.

Read more

The Danish Medicines Agency’s medical cannabis development scheme here

About Valeos Pharma A/S

Valeos Pharma A/S is a Danish company that specializes in EU GMP-certified production of medical cannabis. With manufacturing facilities in Holeby, Valeos Pharma is dedicated to harnessing the therapeutic potential of cannabis to improve the quality of life for patients across Europe. Valeos Pharma strives to innovate and collaborate with other partners in business to deliver safe, innovative and effective medical cannabis products with a focus on enhancing patients' daily well-being. Since its foundation in 2018, Valeos Pharma has established itself as one of the few successful producers of medical cannabis in Denmark. The company's products are sold to other companies that process cannabis flowers into prescription products such as cannabis oil.

About Celadon Pharmaceuticals PLC

Celadon Pharmaceuticals Plc is a British pharmaceutical company focused on the development, production and sale of ground-breaking cannabis-based medicines. Its primary focus is improving the quality of life for people suffering from chronic pain, as well as investigating the potential of cannabis-based medicines for other conditions such as autism. Their 100,000 square foot UK facility is EU-GMP approved and includes indoor hydroponic cultivation, proprietary GMP extraction and an analytical and research and development laboratory. Celadon's license from the UK Home Office enables the commercial supply of their pharmaceutical cannabis products. The group has an approved clinical trial using cannabis-based medicinal products to treat chronic pain in the UK. Celadon also has a minority interest in biopharma company Kingdom Therapeutics, which is developing a licensed cannabinoid drug to treat autism in children.

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