15 February 2018
Collagen Solutions plc (AIM: COS), the developer and manufacturer of medical grade collagen and tissue components for use in regenerative medicine, including orthopaedic, dental, wound care, and cardiovascular applications, provided an update on its Chinese operations.
Over the course of 2017 the Company established a solid foundation in terms of its China market entry strategy through its joint venture with China Resources & Investment Limited (known as "Cre8ive"), who have been instrumental in securing the Company's product import pathway into China and securing initial customers.
Key highlights of these accomplishments include:
- Obtaining import clearances for Collagen Solutions' biomaterials from both UK and New Zealand,
- Completing a joint market assessment for collagen medical products identifying over 4 billion RMB end-market opportunity1,
- Developing an initial pipeline of specific and attractive customer opportunities, and
- Closing the first two supply agreements with Chinese customers, currently in the pre-CFDA submission phase
Following these promising milestones, and a detailed review of opportunities and resource needs going forward, Collagen Solutions has determined a plan for next steps to maximise future market opportunities.
Collagen Solutions engaged a new Shanghai-based firm specialising in the matching of foreign medical device companies with first-tier distributors across China. In addition, Collagen Solutions and Cre8ive have mutually agreed to terminate the joint venture such that Collagen Solutions now owns 100% of the Chinese subsidiary, whilst Cre8ive will continue to provide in-country support services to Collagen Solutions. This new arrangement will allow the Company more flexibility in engaging with and providing technical support to commercial partners in China to take advantage of opportunities within this important territory.
Commenting on this announcement, Jamal Rushdy said: "We are pleased with our initial progress in China and appreciative of Cre8ive's efforts in securing an effective importation pathway for our materials business and securing our first two customers. This new arrangement is critical to the development of Collagen Solutions' sales and distribution channels within China and is well aligned with the 'Chinese culture' of successfully engaging with partners. We are optimistic regarding the potential to realise growth from this significant market and look forward to providing further updates as they develop."
1 Internal Company research and Med Qiao Group LLC
|Collagen Solutions Plc||Tel: 07721 413 496 or firstname.lastname@example.org|
|Jamal Rushdy, Chief Executive Officer|
|Hilary Spence, Chief Financial Officer|
|Lisa Baderoon (Head of Investor Relations)|
|Cenkos Securities plc (Nominated Adviser and Broker)||Tel: 0207 397 8900|
|Walbrook PR||Tel: 020 7933 8780 or email@example.com|
|Anna Dunphy||Mob: 07900 608 002|