HEALTHCARE biomaterials maker Collagen Solutions is predicted to be bringing in £4.7 million in revenue by 2017.

That figure comes from broker Zeus Capital, which has just started covering the AIM-listed company.

Collagen Solutions manufactures collagen for use in a wide range of medical and diagnostic procedures.

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Its genesis includes the Collbio, which has its manufacturing at the Nova Technology Park in Glasgow, buying some of the assets of failed Scottish life-sciences firm Angel Biotechnology in March last year.

That then went through a reverse takeover with the AIM-listed investment company Healthcare Investment Opportunities in December.

At the same time Collbio purchased Collagen Solutions, which was based in California, and decided to adopt that name for its stock-market listing.

Last month it recorded an annual operating loss of £480,000 but management said they were confident the business could eventually generate revenue of around £100 million by 2020.

In an extensive research note published yesterday Zeus pencilled in revenue of £1.1 million for 2015, £2.45 million in 2016 and £4.7 million across 2017.

The research suggests Collagen Solutions would make its maiden pre-tax profit in 2016 with a sum of £50,000, rising to more than £1.5 million the following year.

The note said: "We anticipate strong sales growth year-on-year which will be driven by a growing recognition of the high quality of its products and of the innovative development of new collagen-based biomaterials. We also believe that sales of approved products in the USA will gather momentum across the customer base."

Alongside that Zeus stated its belief that Collagen Solutions is undervalued in comparison to listed peers in the medical technology and biotechnology sectors.

Collbio was set up by Stewart White, who had previously been acting chief executive at Angel Biotechnology. The Collagen Solutions chairman David Evans holds the same role at fellow Scottish health industry company Omega Diagnostics.