Israeli regenerative medicine company CollPlant Holdings Ltd. (TASE: CLPT), which utilizes its proprietary plant-based rhCollagen technology for tissue repair products, has signed a non-binding term sheet with a leading US company in the field of orthobiologics. The agreement is for the further development, and potential commercialization and supply of a novel absorbable bio-active surgical matrix intended for use in spinal fusion and trauma applications.
As a result of the agreement, the company's share price rose 3.4% yesterday and a further 2.4% today.
The new matrix is composed of CollPlant’s Type 1 recombinant human collagen and synthetic minerals that mimic bone structure, and may be used in combination with bio-functional molecules.
CollPlant’s rhCollagen is identical to the type I collagen produced by the human body, and has significant advantages compared to currently marketed tissue derived collagen, including improved biofunctionality, superior homogeneity, and reduced risk of immune response and transmission of diseases. These rhCollagen attributes make it suitable for numerous tissue repair applications throughout the human body.
CollPlant estimates the size of the worldwide target market for relevant spinal and trauma treatments at $3.5 billion per annum.
CollPlant CEO Yehiel Tal said, "This agreement represents recognition of the value of our proprietary rhCollagen technology and biomaterials knowhow, and, over time, should help to catapult CollPlant to the forefront of the orthopedic market.”
The agreement includes potential milestone and royalty payments.
Published by Globes [online], Israel business news - www.globes-online.com - on July 13, 2015
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