Collagen Solutions announced on Thursday that it has engaged with a Shanghai-based firm to help synchronise the distribution of its products in China.
Collagen said the unnamed firm specialise in matching foreign medical device companies with “first tier distributors across China” and also announced that it has terminated its joint venture with Cre8ive, meaning that the AIM-listed company now owns 100% of its Chinese subsidiary.
Collagen Solutions is a Glasgow-based developer, manufacturer and supplier of medical grade collagen for use in regenerative medicine with dental, cardiovascular and wound care applications. December's first-half results showed roughly flat turnover of £1.86m, with strong growth from EMEA but Asia sales down 6% to £0.62m amid “some uneven customer order patterns and some delays in new customer revenue.
Chief executive Jamal Rushdy said: “We are pleased with our initial progress in China and appreciative of Cre8ive's efforts in securing an effective importation pathway for our materials business and securing our first two customers. This new arrangement is critical to the development of Collagen Solutions' sales and distribution channels within China.”
The company has obtained import clearances for its biomaterials from both the UK and New Zealand, has secured two supply agreements in China and completed an initial pipeline of customer opportunities.
“We are optimistic regarding the potential to realise growth from this significant market and look forward to providing further updates as they develop,” said Rushdy.
As of 0912 GMT, Collagen Solutions' shares were up 3.57% at 2.90p.