- Collagen Solutions has acquired all of the assets and an exclusive worldwide licence for the associated intellectual property to ChondroMimetic from Orthomimetics Limited and Cambridge Enterprise Limited.

The consideration payable includes issuing 869,900 ordinary shares. 50% of the consideration is payable on completion, and 434,950 ordinary shares have been issued, with the balance deferred over the next two years. In addition a single digit royalty is payable on future sales of the product to both OL and CEL. ChondroMimetic is a collagen based implant for the treatment of small osteochondral (cartilage and underlying bone) defects and had previously received CE-mark approval for the treatment of small chondral and subchondral lesions. The addressable market is estimated to be in excess of US$500m.

The deal for this product, which has been used in over 300 successful procedures, gives Collagen Solutions access to a portfolio of patents and patent applications covering a range of related collagen-based bioactive materials.

These have the potential to revolutionise the regenerative medicine market for orthobiologics providing structural repair for bones and joints as well as the delivery of biological agents such as stem cells and other therapeutic agents. The ability to effectively repair joints rather than have to replace them will reduce the US$36bn cost to health services of joint replacements significantly. ChondroMimetic and its related products and IP will be transferred to a newly formed wholly owned subsidiary of Collagen Solutions. This subsidiary will be responsible for bringing the manufacture of the product in-house and gaining registrations for the product in order for it to be sold in all significant territories around the world.

Chief executive Stewart White said: "Having established Collagen Solutions as the go to Company for providing novel medical grade collagens, we were in a position to look at acquiring products that are collagen related and would give us the opportunity to not only provide part of the product, but to add value through the manufacture, supply and commercialisation thereby retaining a greater proportion of the value of the product within Collagen Solutions.

"ChondroMimetic is an ideal first medical device acquisition as it brings us both an established product as well as access to a portfolio of additional IP we can exploit in the future."

At 9:57am: [LON:COS] COLLAGEN SOLUTIONS ORD 1P share price was +0.01p at 12.13p

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