COLLAGEN Solutions, the Glasgow-based maker of medical grade collagen that is used to help heal wounds and repair bones, is expanding into China with the launch of a new joint venture.
The Rob Royston based company, which is valued around £11 million on the Alternative Investment Market, said it had entered a joint venture agreement with Beijing-based investment conglomerate Cre8ive to maximise the potential of its business and open up the market in China.
"The purpose of the joint venture company will be to expedite the marketing and supply of our medical grade collagen materials and regenerative medicine products to customers within the People's Republic of China,” said chief executive Stewart White.
The company’s collagen components are used in products including bone grafts, brain stents – used to keep blood flowing in the brain – and wound care for injuries such as ulcers and burns.
Mr White said his company’s 60 per cent control of the joint venture – with Cre8ive holding the other 40 per cent – de-risked its initial investment in the new entity and opened up opportunities in the supply of raw materials and other areas. China’s wound care market alone is forecast to be worth $2.5 billion by 2020.
“It is our intention to build our business in China as well as exploring opportunities to expand our activities in finished medical devices,” Mr White said. “We believe that we have found a trusted partner in Cre8ive and that the company can benefit from their many years' experience in the territory.”
Collagen Solutions employs 35 people in the UK, US and New Zealand and is currently recruiting another three roles in sales and marketing. The joint venture will have offices and staff in Beijing, the company said. Cre8tive invests in technology and real estate, with a current focus on healthcare and ‘big data’ – the analysis of extremely large data sets to spot trends and solve problems. It is currently exiting a payment technology business through an initial public offering on a Chinese stock market similar to Nasdaq.
Collagen Solutions said it would provide the initial investment into the joint venture, in a controlled manner, whilst Cre8ive would provide the territory expertise, support services, administrative and regulatory support in Beijing.
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