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REHOVOT, Israel - CollPlant Biotechnologies (NASDAQ: CLGN), a regenerative and aesthetics medicine company valued at $41 million, announced today the expansion of its distribution network for VergenixSTR, a product designed for tendon injury treatment, across several European and Asian markets. According to InvestingPro data, while the company maintains a strong balance sheet with more cash than debt, it faces challenges with revenue growth, which declined 94% in the last twelve months. The company has signed agreements with distributors in the Netherlands, Turkey, and India to facilitate sales in these regions.
The first shipment of VergenixSTR was made to the new distributor covering the Benelux region and Spain earlier this month. This distributor specializes in medical device sales with a particular focus on orthopedics. In Turkey and India, the distributors, known for their expertise in medical devices, are in the process of obtaining regulatory approvals, aiming to begin sales within the year. These expansion efforts come at a crucial time, as analysts tracked by InvestingPro project the company to achieve profitability this year, with earnings per share forecast at $0.43.
VergenixSTR is based on CollPlant’s recombinant human collagen (rhCollagen) technology and is used in the treatment of tendinopathy. It promotes healing by forming a gel matrix that allows for localized, sustained release of growth factors at the injury site, which is key to optimal healing.
Yehiel Tal, CEO of CollPlant, expressed optimism about the market potential for VergenixSTR, citing its differentiated treatment approach for tendon injuries. The company is also looking to further extend its distribution network to additional territories later this year.
VergenixSTR combines rhCollagen with Platelet-rich plasma (PRP), creating a scaffold that supports cell proliferation and sustained growth factor release, critical for tissue regeneration. This product is injected into the affected area, forming a gel matrix that acts as a reservoir for PRP, aiding in the healing process.
CollPlant’s broader portfolio includes solutions for 3D bioprinting of tissues and organs and medical aesthetics, all based on its proprietary plant-based rhCollagen technology. In 2021, CollPlant entered into a partnership with Allergan (NYSE:AGN), an AbbVie (NYSE:ABBV) company, for the development and commercialization of dermal and soft tissue fillers.
This expansion is part of CollPlant’s strategic efforts to enhance its global presence and offer innovative medical solutions in the field of regenerative medicine. The information regarding the expansion is based on a press release statement.
In other recent news, CollPlant Biotechnologies announced its third-quarter financial results, revealing total revenues of $4,000, significantly below the consensus estimate of $400,000. The company also reported a net loss of $0.38 per diluted share, exceeding the anticipated loss of $0.29 per share. Despite these financial setbacks, H.C. Wainwright reaffirmed its Buy rating for CollPlant, maintaining an $11 price target, indicating ongoing confidence in the company’s future prospects. CollPlant secured a U.S. patent for its photocurable dermal filler product, which is expected to bolster its competitive position in the market. In collaboration with AbbVie, the company is progressing with its rhCollagen technology for dermal and soft tissue fillers, receiving a $2 million payment as part of their agreement. The company is implementing cost reduction measures, including a 20% workforce cut, to extend its cash runway until at least the second quarter of 2026. At the end of the third quarter, CollPlant reported cash and cash equivalents of approximately $15.4 million, expected to support operations through 2025. The company continues to focus on advancing its regenerative breast implant program and exploring additional strategic partnerships.
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