Climate Change Data

CELADON PHARMACEUTICALS PLC

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

  • Environmental Sustainability
  • Societal Benefit (Chronic Pain Treatment)

Environmental Achievements

  • Transitioned to a sustainable energy supplier in December 2022.
  • Ongoing investigation of solar power to reduce environmental impact.

Social Achievements

  • LVL Health's chronic pain feasibility study showed promising results in pain reduction, opioid reduction, and sleep improvement.
  • Multiple expressions of interest in the sale of pharmaceutical-grade cannabis products.

Governance Achievements

  • Successful MHRA inspection and GMP certification in January 2023.
  • Home Office licence updated in March 2023 to allow commercial supply of cannabis products.
  • Establishment of a Long Term Incentive Plan (LTIP) for key employees and consultants.

Climate Goals & Targets

Long-term Goals:
  • Develop advanced cannabinoid medicines with novel delivery technologies.
Medium-term Goals:
  • Ramp up operations in Phase 2 facility to achieve annualised yield of approximately three tonnes of high THC pharmaceutical cannabis.
Short-term Goals:
  • Commence full clinical trial of chronic pain treatment following REC authorization.
  • Convert expressions of interest into long-term supply agreements.

Environmental Challenges

  • High regulatory and capital barriers to entry in the medicinal cannabis market.
  • Inflationary cost pressures during Phase 2 facility fit-out.
  • Lower than anticipated patient uptake in LVL's chronic pain trial due to conditional approval.
  • Potential for increased competition from other products and treatments.
  • Risks associated with cultivation, including plant diseases, pests, and security breaches.
  • Potential for banks and financial institutions to refuse services due to the nature of the business.
Mitigation Strategies
  • In-housing the management of Phase 2 facility fit-out to mitigate inflationary pressures.
  • Active monitoring of the regulatory landscape and frequent dialogue with authorities.
  • Development of a comprehensive risk management process.
  • Investment in differentiation through advanced growing methods and R&D.
  • Extensive security precautions at the facility and during transportation.
  • Active dialogue with banks and financial counterparties.

Supply Chain Management

Responsible Procurement
  • Regular reviews to ensure construction activity is proceeding in line with expectations.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: QCA Code

Certifications: GMP

Third-party Assurance: RSM UK Audit LLP

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Sustainability

Environmental Achievements

  • Transitioned to a sustainable energy supplier in December 2022.
  • Anticipates installation of solar panels capable of generating 1MW of renewable energy in 2024.

Social Achievements

  • Improved quality of life for patients with chronic pain through breakthrough cannabis-based medicines.
  • Working to align with NHS requirements for emissions reporting and carbon reduction plans by 2027.

Governance Achievements

  • Annual review of corporate governance framework.
  • Compliance with the Quoted Companies Alliance Code (QCA Code).

Climate Goals & Targets

Long-term Goals:
  • Capitalise on the significant market opportunities for cannabis-based medicines in the UK and internationally.
Medium-term Goals:
  • Deliver on commercial supply agreements and secure additional customer contracts.
  • Launch the CANPAIN trial at scale to collect real-world evidence for NHS reimbursement.
Short-term Goals:
  • Maximise patient numbers in the CANPAIN trial.

Environmental Challenges

  • Licensing risks associated with the cultivation and sale of medical cannabis.
  • Funding risks associated with the development and expansion of the business.
  • Design and construction risks associated with the building of a new facility.
  • Agricultural risks associated with the cultivation of cannabis.
  • Competition from other products and treatments.
  • Reputational risks associated with the medical cannabis industry.
  • Clinical trial risks, including delays or negative results.
  • Security risks associated with the transportation and storage of high-value cannabis products.
  • Banking and financial services risks associated with the cannabis sector.
Mitigation Strategies
  • Established Quality Assurance team and frequent contact with the Home Office.
  • Plans to raise additional funds through equity financing or debt financing.
  • Regular reviews of construction activity and lessons learned from Phase 1.
  • Research and development into agricultural environment, product testing, and traceability.
  • Active monitoring of the competitive landscape and investment in differentiation.
  • Active monitoring of news and communications efforts.
  • Diversification of research into other conditions beyond chronic pain.
  • Extensive security precautions and close collaboration with local police forces.
  • Active dialogue with banks and financial counterparties.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: QCA Code

Certifications: Good Manufacturing Practices (GMP)