COLLAGEN Solutions, the manufacturer of biomaterials and regenerative medicines, has declared it is on track to beat full-year revenue forecasts, sending shares up six per cent.
The firm, which has a manufacturing facility in Glasgow, expects to deliver revenue of £4.15 million for the year ended March 31, up from £3.5m, noting that agreements to develop collagen products for third parties had made a big contribution in the second half.
Collagen now expects its full-year losses to be lower than expected because of improvements to the top line and the sale of its holding in Jellagen, a marine biotechnology firm, for £215,000 in February. It had held a minority stake in Jellagen, which is focused on developing collagen biomaterials from jellyfish, since 2014.
Elsewhere, Collagen noted that it has established distribution partners in Europe and Asia in anticipation of securing a CE mark for ChrondroMimetic, a product designed to aid the repair of cartilage defects in the knee.
Chief executive Jamal Rushdy said: “We are pleased with our delivery of high double-digit growth within our core business representing a substantial turnaround of performance from our prior financial year. In addition, our increased mix of development services is a positive leading indicator of success in our strategy to move up the value chain. We look forward to providing a further update when we announce our preliminary results in July.”
In January, Collagen secured grants of £1.54m from Scottish Enterprise to support the development of its next generation of proprietary products. The company said trading since year-end has been in line with expectations.
Shares closed up 0.2p, or 5.9%, at 3.6p.
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