TIDMCOS

RNS Number : 8953Y

Collagen Solutions PLC

14 September 2015

Collagen Solutions Plc

(the "Company" or "Collagen Solutions")

Acquires all assets for ChondroMimetic and related products

Collagen Solutions plc (AIM: COS), the developer and manufacturer of medical grade collagen components for use in regenerative medicine, medical devices and in-vitro diagnostics, announces that it has acquired all of the assets and an exclusive worldwide licence for the associated intellectual property to ChondroMimetic from Orthomimetics Limited ("OL") and Cambridge Enterprise Limited ("CEL").

The consideration payable includes issuing 869,900 ordinary shares. 50% of the consideration is payable on completion, and 434,950 ordinary shares have been issued, with the balance deferred over the next two years. In addition a single digit royalty is payable on future sales of the product to both OL and CEL.

ChondroMimetic is a collagen based implant for the treatment of small osteochondral (cartilage and underlying bone) defects and had previously received CE-mark approval for the treatment of small chondral and subchondral lesions. The addressable market is estimated to be in excess of US$500m.

The deal for this product, which has been used in over 300 successful procedures, gives Collagen Solutions access to a portfolio of patents and patent applications covering a range of related collagen-based bioactive materials. These have the potential to revolutionise the regenerative medicine market for orthobiologics providing structural repair for bones and joints as well as the delivery of biological agents such as stem cells and other therapeutic agents. The ability to effectively repair joints rather than have to replace them will reduce the US$36bn cost to health services of joint replacements significantly.

ChondroMimetic and its related products and IP will be transferred to a newly formed wholly owned subsidiary of Collagen Solutions. This subsidiary will be responsible for bringing the manufacture of the product in-house and gaining registrations for the product in order for it to be sold in all significant territories around the World.

Commenting on the acquisition Stewart White, CEO of Collagen Solutions, said: "Having established Collagen Solutions as the go to Company for providing novel medical grade collagens, we were in a position to look at acquiring products that are collagen related and would give us the opportunity to not only provide part of the product, but to add value through the manufacture, supply and commercialisation thereby retaining a greater proportion of the value of the product within Collagen Solutions.

"ChondroMimetic is an ideal first medical device acquisition as it brings us both an established product as well as access to a portfolio of additional IP we can exploit in the future."

Ian Harris, Company Director, of Orthomimetics added: "We are delighted to have reached this agreement with Collagen Solutions which has the resources and knowledge-base to see ChondroMimetic build on its early promise and create additional novel related products which will revolutionise the orthobiologics market."

Application has been made for the 434,950 ordinary shares to be admitted to trading on AIM which is expected to occur on or around 18 September 2015. Following this issue of ordinary shares, and for the purposes of the Disclosure and Transparency Rules, the Company's total issued share capital will consist of 171,403,815 ordinary shares.

For a video of the ChondroMimetic procedure, please view:

https://www.youtube.com/watch?v=nPFxAb5Jypo

Enquiries:

 
 Collagen Solutions Plc 
 David Evans, Chairman                  Tel: 07740 084 452 
 Stewart White, CEO                     Tel: 0141 648 9100 
 
 Panmure Gordon & Co (Nominated          Tel: 0207 8862 714 
  Advisor and Broker)                     Tel: 0207 886 2905 
  Robert Naylor (Corporate Finance) 
  Maisie Atkinson (Corporate Broking) 
 
 Walbrook PR Ltd                        Tel: 0207 9338 780 or collagen@walbrookpr.com 
 Anna Dunphy                            Mob: 07876 741 001 
 Mike Wort                              Mob: 07900 608 002

This information is provided by RNS

The company news service from the London Stock Exchange

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September 14, 2015 02:00 ET (06:00 GMT)

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