UK Pharma Co. Becomes First Ever Permitted By Gov To Produce High-THC Medicinal Cannabis
20-Jan-23 04:50:54

UK-based Celadon Pharmaceuticals PLC received the green light to produce high-THC medicinal cannabis in its Midlands facility, reported London South East.

What Happened: This is the first company in the United Kingdom to be granted a Good Manufacturing Practice or GMP registration by the Medicines and Healthcare products Regulatory Agency to produce medical marijuana on UK soil.

The move follows seven harvests and extractions in 2022 and the facility's inspection by MHRA in the fourth quarter.

Why It Matters

Founded in 2018, the same year the UK legalized medical marijuana, Celadon Pharmaceuticals is positioned to take its fair share of a market projected to surpass £1bn by 2026, according to an analysis from cannabis market intelligence firm Prohibition Partners.

At the moment, UK patients rely on imported products, which often results in delays and high costs, Celadon recently said.

"With the receipt of GMP registration, Celadon has joined a very select group of cannabis-focused pharmaceutical companies globally," said James Short, the company's CEO. "This is a tremendous milestone for the Company given the significant capital and regulatory requirements in this sector."

Moreover, Celadon claims that the move makes it one of few global companies with the capacity to produce an EU GMP-grade high tetrahydrocannabinol cannabinoid API.

What's Next

Prior to the sale of high-THC medicinal cannabis in the UK, the Home Office needs to update the company's current license to reflect its GMP status.

"Whilst there is no guarantee that the Home Office will update the current license, nor any timeframe for this, the directors are confident that the license will be updated in due course," Celadon said in a statement.

Background

The UK opened its first specialized medical cannabis clinic in 2019. The Manchester-based facility kicked off operations after the UK rescheduled certain cannabis products allowing medical professionals to prescribe them.

Interestingly, Canadian cannabis giant Aurora Cannabis Inc. (NASDAQ:ACB) (TSX:ACB) has been present in the market for years via collaboration with the UK-focused biopharmaceutical company Grow Group PLC. Aurora's subsidiary Aurora Germany GmbH and Grow Group signed a two-year market access services agreement for the UK in May 2021.

Photo: Courtesy of Kimzy Nanney on Unsplash

SOURCE & CREDIT: MARKETS INSIDER