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Collagen Solutions shares shoot up after clinical trial success
Collagen Solutions' share prices jumped almost 20% on Wednesday after the company reported a positive outcome from its latest clinical study.
The medical grade collagen manufacturer, reporting results from its eight-year study into the effects of its ChrondoMimetic implants on the long term repair of cartilage defects in the knee, said quantitative 3D MRI analysis demonstrated that cartilage regeneration in the treated subjects reach a level of structural quality nearly identical to that of native cartilage and patients experienced an improvement in symptoms, pain, function and activity level.
"Based on our first-hand clinical experience with ChondroMimetic and these new results confirming the sustainability of both cartilage regeneration and the improvement in patient outcomes, it is my firm belief that this scaffold has an important place in the treatment of focal chondral lesions," said László Hangody, orthopedic surgeon and principal investigator for the study.
A validated patient outcome score, called the 'knee injury and osteoarthritis score', showed outcomes from the procedure equaled or improved upon outcomes reported for substantially more expensive technologies.
Alan Getgood, orthopedic surgeon involved with ChondroMimetic's development, said: "The long term quantitative MRI data of cartilage repair volume and tissue quality in patients who were treated with ChondroMimetic® are extremely attractive. This is consistent with the previously performed animal studies which showed a 25% improvement in cartilage repair over controls."
Collagen solutions said its product would be suitable for at least 30-40% of the over 1m surgical procedures to treat cartilage defects in the knee that take place in the US and Europe every year, and said other products have "not demonstrated sustainable efficacy beyond five years post-treatment".
Jamal Rushdy, chief executive of Collagen Solutions, said: "We have illustrated the commercial opportunities with the announcement of an agreement with our South Korean partner in December last year. We look forward to announcing further key milestones including the granting of the CE Mark over the next few months."
Rushdy added that he was confident the company would "provide future sustainable revenue generation."
Collagen Solutions is a supplier, developer and manufacturer of medical grade collagen, tissues and related medical devices and is headquartered in Glasgow.
As of 1449 GMT, Collagen Solutions' shares were up 18.52% to 3.20p.