COLLAGEN Solutions has seen its share price soar 11 per cent after announcing an exclusive licensing deal for novel intellectual property.
The company, which manufactures collagen for use in medical and diagnostic procedures, has struck an agreement to use IP generated by Professor Robert Brown, a specialist in tissue engineering, and his laboratory at University College London (UCL).
A patent has been granted in the United States to produce what the company described as "stronger and more durable living collagen-based tissues".
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The materials could provide additional clinical possibilities for replacing skin, tendon, bone, cartilage, blood vessels and nerve conduits. Chief executive Stewart White said: "There is significant opportunity to apply the technology to a wide range of clinical applications."
AIM-listed Collagen Solutions said these materials can be rapidly produced from more efficient stock and are physically stronger than current alternatives.
The business suggested this would give surgeons the option to implant the materials more quickly, while there is also the possibility of having the products designed for specific patients or injuries.
It also highlighted the potential for autologous cell therapies, which involves using cells from the same individual, as well as allogeneic when cells from one person could be implanted in another.
Mr White confirmed the patent was the start of a process which will now go on to clinical trials and meeting regulatory requirements.
He said: "These things always take a group of expert partners. Ourselves, Professor Brown and UCL are the start of that process."
If the technology can be commercialised it is likely to be a boost for Collbio, a subsidiary of Collagen Solutions, and its site in the Nova Technology Park in Glasgow. Mr White said: "If successfully commercialised then [manufacturing] would be done in Glasgow."
Collbio bought some of the assets of failed Scottish life sciences firm Angel Biotechnology in March last year before going through a reverse takeover with AIM-listed investment company Healthcare Investment Opportunities in December.
At the same time Collbio bought California-based Collagen Solutions and adopted that name for AIM.
Shares closed up 1p at 10.12p.