Regenerative medicines group Collagen Solutions PLC (LON:COS) is on track to hit its financial and operational targets this year, chief executive Jamal Rushdy will say at today’s annual general meeting.
“We are on track to meet our key initiatives for the year, including achieving financial performance to bring us in line with market expectations,” Rushdy will say at the meeting which is to be held in Glasgow.
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He will add that Collagen’s commercial execution plans are also progressing well, with the two new Chinese distribution deals announced on Tuesday and new development agreements offsetting the fact that the company’s biggest customer in Korea is unlikely to place an order this year.
The firm’s ChondroMimetic implants, used as a bone and cartilage scaffold for the repair of cartilage defects in the knee, is on course to receive a CE Mark as well as its first-in-man surgery in the current financial year.
“We are currently in negotiations with multiple distributors in Europe, which we expect to conclude in parallel with the ChondroMimetic CE Mark,” Rushdy will tell investors.
“We also recently completed the initial animal studies for our proprietary bone graft product that will support partner discussions at the upcoming North American Spine Society meeting in September.”
READ: Collagen makes strong start to current year
Earlier this year, Collagen unveiled a restructuring of its New Zealand operation designed to see the division focused on tissue collection and processing, a segment estimated to be worth US$100mln.
The firm told investors that annual savings were estimated to be £200,000, balanced by one-off costs in the order of £150,000, with existing collagen production to be consolidated into Glasgow.
“Operationally, our New Zealand restructuring initiative is delivering the expected synergies and benefits, as the assets related to collagen production and R&D have been relocated to the UK and USA respectively with operational setup and validation underway according to plan.
“The New Zealand team is now fully focused on the tissue business and has already identified several new customer opportunities.”