Our Cannabis team has advised UK-based Celadon Pharmaceuticals PLC ("Celadon") on a strategic collaboration with Danish pharmaceutical company Valeos Pharma A/S ("Valeos").
Under the terms of the agreement, Celadon, which develops, produces and supplies cannabis-based medicines, will licence some of its genetics to Valeos for cultivation. This will enable the two companies to accelerate the supply of pharmaceutical-grade cannabis active pharmaceutical ingredient (API) products to Celadon's current and prospective customers in Europe.
Valeos operates a licensed cultivation facility in Denmark, with the capacity to produce 1.5 tonnes of pharmaceutical-grade medical cannabis every year. Through this agreement, Celadon will also leverage its expertise in facility design, cultivation techniques and operating processes to help Valeos refit its cultivation rooms and target a 100% increase in yield, which could be worth up to £30 million annually. Production in Valeos' refitted rooms, using Celadon's IP, is expected to commence in Q1 2025.
Partner Samantha Myers, Head of UK Cannabis at Gowling WLG, advised Celadon on this agreement with Alexi Markham (Commercial) and Sharmela Kalmer (IP).
Commenting on the deal, Samantha said: "I am delighted to have worked with our valued client, Celadon Pharmaceuticals, on this agreement that will help to support their advancement in medical cannabis supply and production for their customers and accelerate Celadon's path to profitability."
At Gowling WLG, the Cannabis Group helps a wide range of cannabis industry participants manage the regulatory and commercial frameworks shaping the sector. They work closely with entities from other sectors that are looking to leverage the growth opportunities presented by cannabis.