Life sciences firm Collagen Solutions got a share boost today as it revealed that one of its long-term clients had gained US approval for a new device that makes collagen products easier to use.
The Glasgow-based group said NovaBone had been given the green light from the US Food & Drug Administration for a delivery system designed for “minimally invasive” orthopedic procedures.
MacroForm has been developed for surgeons requiring precise delivery of collagen bone grafting material to surgical sites that are not readily accessible.
The Scots firm is a key supplier of medical grade collagen to NovaBone, so is likely to benefit from the introduction of the new device.
Stewart White, chief executive of Collagen Solutions, said: “Once again, we see the long-term value generation that we can gain by having our collagen embedded into novel products.
“This impressive innovation by the team at NovaBone around making their collagen products easier to use ensures a commitment to growth of these products within attractive addressable markets.
“It is anticipated this regulatory approval for NovaBone will have a direct effect on revenues to Collagen Solutions.”
Shares in the Aim-quoted firm rose by about 8 per cent.
Mike Mitchell at brokerage Panmure Gordon said: “[We] see the news as important affirmation of the model and development trajectory for the company.”