SHARES in Collagen Solutions, the Glasgow-based medical products business, jumped yesterday after it struck a deal to supply a US healthcare firm.
Under the deal, the Scots group will provide collagen powder to Globus Medical for use in the manufacture of bone grafting products deployed in spinal surgery.
Dr Stewart White, chief executive of Collagen Solutions, which develops and manufactures medical grade collagen components for use in regenerative medicine, medical devices and in-vitro diagnostics, said the agreement came at an “exciting time for the company”.
“It is another example of how Collagen Solutions will realise its value, through strong and long partnerships with customers, founded on early stage commitment and the provision of quality, competitive collagen materials to ensure the provision of cost effective health care for patients.”
The company saw one of the biggest share price gains on the stock market yesterday, despite heavy falls elsewhere, rising 9 per cent, or 1.1p, to close at 13.6p.
Globus Medical’s chief executive David Paul said: “Collagen Solutions’ technical and quality expertise is value-adding to our product and is the basis on which we have made this commitment. Collagen Solutions is an important material provider in our supply chain and we look forward to a long association with the company.”
The US firm had sales of $434.5m (£285m) in 2013 and is one of the fastest growing companies in the history of orthopaedics.
Last month, private equity fund manager Calculus Capital announced it had backed Collagen Solutions as it looks to build itself into a £100m company in the next five years.
The finance house, whose other investments include Edinburgh-based financial software group Money Dashboard, took part in Collagen’s recent £6m fundraising that has enabled it to purchase New Zealand business Southern Light Bio- materials.
Collagen Solutions, which currently has a market capitalisation of around £6m, develops and manufactures medical-grade collagen components used in regenerative medicine, medical devices and diagnostic products.
Last month the firm also signed an agreement with Netherlands-based Kyeron Medical Innovations to develop and supply collagen powder for the manufacture of a wound management product.
Collagen rose from the ashes of collapsed Edinburgh life science company Angel Biotechnology in December 2013. White, pictured, who had been a former acting chief executive at Angel, launched a company called Collbio which bought Angel’s assets in Glasgow, including a plant previously owned by sausage skin maker Devro. Collbio then bought Collagen and will adopt Collagen Solutions as its new name.
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