The firm, which develops collagen components for use in regenerative medicine and medical devices, is also seeking to expand its manufacturing site in Glasgow to meet demand.
To help achieve its ambitions of becoming a global business, Collagen Solutions last year acquired New Zealand-based Southern Lights Biomaterials in a £6 million cash and shares deal, and chief executive Stewart White told The Scotsman that the acquisition had been a “transformational event” for the Aim-quoted firm, which has a significant market presence across Asia and the US.
He added: “Everything about this has been additive and complementary. In some situations like this there’s a lot of crossover in customers, but there’s been very little. It’s a big and exciting job and we’ve started to cross-sell and up-sell into the combined customer base and that’s going to be an ongoing theme.”
He said Collagen Solutions was boosting the size of its manufacturing unit in Glasgow, where it employs 12 people, as it transfers over technology developed at its research centre in San Jose, California.
White’s comments came after the company – which rose from the ashes of Edinburgh life sciences firm Angel Biotechnology in December 2013 – posted revenues of £972,846 for the 12 months to 31 March, up from just £24,023 a year earlier. However, a sharp rise in administrative costs saw pre-tax losses more than double to £1.1m.
White did not rule out further acquisitions as the company, with a current market capitalisation of £16m, aims to grow its value to £100m by 2020, adding: “The valuation versus potential revenue multiple is realistic, given the growth we’re going to push forward with.”
Last year Irish rival Innocollcorr, which uses collagen to produce a range of surgical implants and wound treatments, raised about $58.5m (£37.7m) by floating on the Nasdaq market and is now valued at almost £230m.