Shares in an an AIM-listed firm Celadon have spiked after production of its high-THC product was approved by the regulator.
Celadon, which focuses on the research, cultivation, manufacturing and sale of cannabis-based medicines, said production of its UK-made drugs had been registered by UK authorities today.
The UK Medicines and Healthcare Products Regulatory Agency (UK MHRA) agreed the Good Manufacturing Practice (GMP) of the Active Pharmaceutical Ingredient (API) by the firm.
The approval marks what the firm believes is the first registration of production for the treatment since the law was changed in 2018 by the then Secretary of State for Health Sajid Javid.
In jumping over the regulatory hurdle, it brings the UK a step closer to maximising what is thought to be a £1bn-plus industry.
Its Midlands-based facility to be one of the only firms in the world capable of producing EU-level GMP grade cannabis drugs, with its directors saying current patients in the UK are reliant on imported products, involving lengthy delays and high costs.
The company also requires a Home Office licence to sell high-THC products in the UK, and has notified the department of its request to update its existing licence to reflect GMP status.
Celadon, which is the first cannabis firm to be listed in AIM since GW Pharma in 2011, said its shares were up 10 per cent after the announcement.
James Short, its chief executive, said: “With the receipt of GMP registration, Celadon has joined a very select group of cannabis-focused pharmaceutical companies globally.
“This is a tremendous milestone for the company given the significant capital and regulatory requirements in this sector.
“Today’s announcement is the culmination of four years of hard work.”