NESS ZIONA, Israel, July 13, 2015 /PRNewswire/ --
CollPlant (TASE:CLPT), a regenerative medicine company utilizing its proprietary plant-based rhCollagen technology for tissue repair products, announced today that it has signed a non-binding term sheet with a leading U.S company in the field of orthobiologics, for the further development, and potential commercialization and supply of a novel absorbable bio-active surgical matrix intended for use in spinal fusion and trauma applications.
The new matrix is composed of CollPlant's Type 1 recombinant human collagen and synthetic minerals that mimic bone structure, and may be used in combination with bio-functional molecules.
CollPlant's rhCollagen is identical to the type I collagen produced by the human body, and has significant advantages compared to currently marketed tissue-derived collagen, including improved biofunctionality, superior homogeneity, and reduced risk of immune response and transmission of diseases. These rhCollagen attributes make it suitable for numerous tissue repair applications throughout the human body.
CollPlant estimates the size of the worldwide target market for relevant spinal and trauma treatments at $3.5 billion per annum.
Yehiel Tal, Chief Executive Officer of CollPlant, noted, "This agreement represents recognition of the value of our proprietary rhCollagen technology and biomaterials knowhow, and, over time, should help to catapult CollPlant to the forefront of the orthopedic market."
If an agreement is consummated, and upon on successful crossing of the milestones of the agreement, CollPlant will receive payments for the license to use its technology, milestones for the achievement of clinical and regulatory events and single-digit royalty payments for future global sales, as well as participation in costs associated with the building of a CollPlant-run manufacturing facility for the production of rhCollagen and the product in the U.S.
While there is no certainty of concluding a definitive agreement, both parties are pursuing its completion.
Yuval Horn and Tammy Alon of Horn & Co. Law Offices have represented the Company in the negotiations with the U.S. Partner.
CollPlant is a clinical-stage regenerative medicine company leveraging its proprietary, plant-based rhCollagen technology for the development and commercialization of tissue repair products, initially for the orthobiologics and advanced wound care markets. Given that CollPlant's rhCollagen is identical to the type I collagen produced by the human body, it offers significant advantages compared to currently marketed tissue-derived collagen, including improved biofunctionality, superior homogeneity and reduced risk of immune response. The Company's broad development pipeline includes biomaterials indicated for orthopedics and advanced wound healing. Lead products include: Vergenix™STR (Soft Tissue Repair Matrix), for the treatment of tendinopathy; Vergenix™FG (Flowable Gel) wound filler, for treatment of acute and chronic wounds, and; Vergenix™BVF (Bone Void Filler), for use in spinal fusion procedures and trauma. CollPlant's business strategy includes proprietary development and manufacturing of tissue repair products and their commercialization and distribution, together with leading third parties, alongside alliances with leading companies for joint development, manufacturing and marketing of additional products. For more information about CollPlant, visit http://www.collplant.com
Contact at CollPlant:
Chief Financial Officer
Contact at Rx Communications Group, LLC:
Paula Schwartz (for US Investors)
Senior Vice President