CollPlant jumps on bioink deal

CollPlant Bio-Ink Photo: PR

The Israeli regenerative medicine company also signed a distribution deal for the company's wound product in Greece and Cyprus.

Israeli regenerative medicine company CollPlant Holdings Ltd. (TASE: CLPT; OTC: CQPTY), which makes collagen-based products from tobacco leaves, has announced two commercial agreements for two different products. The company's share price leaped 15% yesterday, pushing its market cap up to NIS 94 million. CollPlant's largest shareholders are Alpha Capital Partners, controlled by Martin Schlaff, and Ami Sagi, Teddy Sagi's father.

The first agreement is for CollPlant's biological ink, used as a framework for building artificial organs. The products themselves are still far from the market, but the company has already received an order for several hundred thousand dollars from a large biotechnology company that produces artificial organs. CollPlant will supply the goods in two stages, with the first one beginning immediately and the second in mid-2018.

This is CollPlant's second order in two months for its biological ink products, and both of them are from companies developing artificial organs. These products are not yet being marketed, and will not generate much more in revenue than the current deals, at least until advanced clinical trials begin. If these products reach the market in the future, however, and if the companies find CollPlant's biological ink to be a satisfactory component for their products, CollPlant will enjoy a share of these products without having to do any marketing for them.

CollPlant also announced the signing of a distribution agreement in Greece and Cyprus for a product already being marketed in the European market - Vergenix, for treatment of wounds. The agreement includes a commitment for an initial order but the amount is not significant for the company's business. CollPlant already has marketing agreements for the product in the Netherlands and Turkey, and is marketing it in Israel.

CollPlant's revenue totaled NIS 716,000 in the first nine months of 2017, mostly from the company's third product for treatment of tendons marketed by the Arthrex sports company. CollPlant posted a NIS 14.9 million net loss during this period.

CollPlant recently submitted a prospectus in the US for moving from the over-the-counter stock exchange to Nasdaq. The company has announced its intention of being delisted from the TASE if it is upgraded to Nasdaq.

Published by Globes [online], Israel Business News - www.globes-online.com - on November 29, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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CollPlant Bio-Ink Photo: PR
CollPlant Bio-Ink Photo: PR
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