Specialises in regenerative medicines and biomaterials
Makes everything from heart valves to wound dressings
Award of CE Mark for ChondroMimetic next major inflection point
Asian and European distribution agreements already in place
What it does
It uses collagen and/ or tissue – such as pericardium – to make everything from heart valves to bone grafts right through to wound dressings. It all depends on what the customer wants.
Collagen has another string to its bow though, in the shape of its lead product called ChondroMimetic.
ChondroMimetic is a minimally-invasive surgically placed scaffold which helps to repair knee cartilage.
Last February, results from an eight-year clinical extension study showed that ChondroMimetic was able to regenerate cartilage to a structural quality almost identical to native cartilage.
How it’s doing
Work on a CE Mark, which would signify that the product has passed safety, health and environmental protection requirements, began almost straight after those results came in.
Collagen had hoped to hear whether or not it had been successful by the end of March 2019, although with the process out of its hands, it recently admitted that the timing of any award is “uncertain”.
Currently, ChondroMimetic is not approved for sale in any market, but Collagen has been working hard behind the scenes so that it is ready for sale as soon as the CE Mark is awarded.
Most recently, it signed a licence and distribution agreement with Rajawali Medika which it will work with to obtain regulatory approval and launch the cartilage scaffold in Indonesia. There is the potential for this deal to include several other countries in South East Asia as well.
That agreement adds to similar deals it has already secured elsewhere in Asia and in Europe.
Revenues rise in first half
Away from ChondroMimetic, Collagen saw demand for its products surge in the first half of its financial year.
The AIM company won nine new contracts in the six months ended September 30 (H1 17: eight) and began to supply to sixteen new customers (H1 17: eight).
That helped to push revenue up by 13% year-on-year to £2.10mln (H1 17: £1.86mln). When adjusted for the loss of a key Korean customer, who is not expected to order again until next year, revenue grew by 55%.
The new contracts were typically higher value than those that had been signed in the past as well, narrowing the half-year pre-tax loss to £1.06mln (H1 17: £1.64mln).
At the end of the period, Collagen had £2.56mln of cash in the bank, although in January it secured a £1.54mln grant from the Scottish government.
What the boss is saying