Collagen Solutions pins hopes on ChrondoMimetic as losses widen

Medical grade collagen component developer and manufacturer Collagen Solutions posted its results for the six months to 30 September on Monday, with revenue and other income increasing by 30% to £1.89m.

The AIM-traded company’s adjusted LBITDA was £0.42m, widening from the £0.79m loss at the same time last year.

Its pre-tax loss totalled £0.98m, compared to £0.36m, with a basic and diluted loss per share of 0.60p, widening from 0.26p.

At period end, Collagen Solutions had cash and cash equivalents of £1.66m, down from £2.49m at the start of the year.

“I am pleased to report on the continued momentum in our core biomaterials contract development, supply, and manufacturing business,” said CEO Jamal Rushdy.

“Recent investment in sales and marketing, and in particular talent, systems and processes, has resulted in improved operational efficiency.”

Rushdy said the integration of research and development efforts globally had also resulted in a more focused pipeline of near-term finished device projects that will address major markets in orthopaedics and wound care, including its flagship ChondroMimetic programme.

“We are on track to initiate a six-year retrospective study for ChondroMimetic with new data to demonstrate long-term tissue regeneration with 3D MRI analysis as well as sustainability of the early positive functional results, and in parallel obtain the CE mark in 2017.

“Together, we believe that the progress made during the period set the strategic foundations on which we will base our objective to grow our revenue by 5x within 5 years.”

Post period end, Collagen Solutions said its management team had been strengthened by the appointment of Kevin Darling as its New Zealand general manager.

Distribution agreements were also recently signed for research markets in South Korea and Japan.