CollPlant Ltd., which has developed a method for producing human collagen in tobacco leaves, has signed a marketing contract for its product in Japan. The deal has a potential initial value of a few million dollars, which could grow to tens of millions of dollars, if it is expanded. This is CollPlant's first marketing agreement.
CollPlant did not disclose the name of its partner, only saying that it one of Japan's leading distributors of biotechnology R&D products. CollPlant will sell its collagen product for testing purposes to universities and drug companies.
If the marketing agreement is expanded for the sale of collagen for use in clinical, aesthetic, and other purposes, sales could grow to tens of millions of dollars. The agreement is not exclusive.
CollPlant chairman Efi Cohen-Arazi said that the Japanese collagen market for these purposes was currently estimated at $40 million, and that the company believes that it can win a 10% share of the market.
Cohen-Arazi added, "Today, collagen is usually produced from cattle or pigs. The sole source for human collagen, which is more suitable for use in people, is from bodies, an expensive and problematic source. Now, for the first time, laboratories will have a cheap, available, and clean source of human collagen."
CollPlant's controlling shareholder is Biomedix Incubator Ltd. (TASE:BMDX) with a 56.6% stake through Meytav Technological Enterprises Innovation Center Ltd. and Spearhead Investments (Bio) Ltd. (formerly Cure Investments Ltd.). Other shareholders include the Pontifax Fund, Docor International Management Ltd., Yissum Technology Transfer Company of the Hebrew University of Jerusalem, Modgal-Tech Ltd., and the Office of the Chief Scientist.
Published by Globes [online], Israel business news - www.globes-online.com - on November 15, 2009
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