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Collagen Solutions plc

Q&A with Stewart White CEO of Collagen Solutions (LON:COS)

Collagen Solutions (LON:COS) Chief Executive Officer Dr Stewart White caught up with DirectorsTalk for an exclusive interview to discuss the acquisition of all assets and IP for ChondroMimetric


Q1: This week we’ve seen the announcement that Collagen Solutions has acquired all of the assets and an exclusive worldwide licence for the associated intellectual property to ChondroMimetric. Now Stewart, this is a different level of activity for Collagen Solutions, how will this work?

A1: We think it’ll work very well. What it shows is that we understand opportunities in the market place founded on knowledge of collagen chemistry, the market and with a very strong network. We’ve been very clear in terms of using an IP and know how to move up the value chain, I think this is a great example of doing so in an area that we understand. There’s clearly a demand for growing innovation and we think we’re, basically, tooled up to do the job in terms of manufacturing capabilities and capacity.


Q2: Why are you targeting the cartilage bone repair area as Collagen’s first foray into finished devices?

A2: It’s a good question. I think we’ve got lots of areas that we’re looking at, making access roads into and this was the first one we’re going to go over the line, if you will. We know the folks involved and indeed the product fairly well and I think the fact that it’s already had successful usage, we’re very comfortable about the assets that we’re taking on and the technology we’re taking on. Also, yes it’s about the product of course but it’s a significant patent estate that sits behind that, that’s also of significant interest to us.


Q3: The device was on the market before, how will Collagen Solutions (COS) do this differently or better?

A3: We think we can do it certainly differently because what we intend to do is capturing as much of that value chain as possible and this is the way we think we can do it best. What I mean by that is that we can supply the collagen, we can supply the manufacturing capacityand even though there’s a range of commercial routes that we could take with this product, we think that we can keep that manufacturing revenue piece of that coming back regardless of the commercial routes that are available to us. We understand the background to the product and I think that connected with the access to market, the access to interested parties and larger companies than ourselves in this space, then we can make a good success of it.


Q4: So does this then indicate a change of direction for the business?

A4: No, not change of direction, we’re very much sticking to the strategy of moving up the value chain but also not forgetting where we come from in terms of supplying collagen to a range of indications and markets and we’re using the capacity that we have to the best of its ability. We’ll continue to look up the value chain in a number of therapeutic areas and it just so happens that on this occasion that it’s cartilage repair is the one. We’re very excited about it, it’s got great potential and we look forward to moving forward with the product.


Q5: What should investors be looking for over the next 6-12 months in terms of news flow?

A5: I think more of the same from us. We’ve been very lucky over the 9-12 months in terms of the PR where we agree with our customers which is much appreciated and we’d be looking to do more of that, to show not only progress moving forward in the business but actually some of the value I’ve talked about on several occasions that we’ve been able to capture the historic value that is within Collagen Solutions and hopefully communicate that to the market in due course.

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