CollPlant Files for American IPO

- October 25th, 2016

Shortly after receiving the CE mark for their second product, CollPlant has filed for an American IPO.

Shortly after receiving the CE mark for their second product, CollPlant (TLV:CLPT) has filed for an American IPO. The Israel-based biotech plans to list on the NASDAQ under the ticker symbol “CLGN.” So why might investors be interested? According to their SEC filing, CollPlant has developed the first commercially viable way to genetically engineer human collagen. If their products prove successful, the company anticipates annual revenues exceeding five billion dollars.
Genetically engineered or recombinant human collagen can be used in medical devices, drug delivery, research, tissue-engineering and diagnostics. CollPlant focuses on wound care and orthobiologics specifically, although their SEC filing indicates an intention to move beyond these markets eventually.
Their first product, VergenixFG Wound Filler, is designed to promote healing of diabetic ulcers, second degree burns, surgical wounds and more. It received the CE mark in February 2016 and arrived on the European market just a few months ago. More recently, CollPlant received the CE mark for VergenixSTR, which treats tendon inflammation.

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Both products use the company’s signature rhCollagen, which is produced through plant-based genetic engineering. It’s identical to the type 1 collagen produced in the human body and has, according to CollPlant’s website, several distinct advantages over collagen taken from animals or human cadavers: namely faster healing, reduced scarring and zero risk of introducing new pathogens to the body.
It’s exciting stuff—and perhaps intriguing enough to win CollPlant the $25 million they hope to raise in this American IPO. Nevertheless, some investors remain leery of the biotech sector after its volatility this year. Still more are anxious about the outcome of the American presidential election: as Republican candidate Donald Trump’s poll numbers have dropped, so too has the biotech index.
Will these concerns make CollPlant’s IPO less successful? Stay tuned.
Don’t forget to follow us @INN_LifeScience for real-time news updates.
Securities Disclosure: I, Chelsea Pratt, hold no direct investment interest in any company mentioned in this article.
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