Biomaterials manufacturer Collagen Solutions has bought a specialist medical product used for bone and soft tissue repair in a deal likely to be worth more than £100,000.
The global licence and patents for ChrondoMimetic have been bought from Orthomimetics and Cambridge Enterprise.
AIM-listed Collagen Solutions plans to issue 869,900 new shares with half of those being payable on formal completion of the transaction.
The balance will be deferred over the next two years but is not based on reaching any milestones.
A small royalty payment on future sales is also payable to Orthomimetics and Cambridge Enterprise.
The ChondroMimetic implant is used to treat small cartilage and bone defects and is said to have been used in more than 300 procedures.
The market for the product is said to be worth more than $500 million and could help to reduce the need for joint replacements.
All of the products and intellectual property is being transferred into a new Collagen Solutions subsidiary.
That will look to bring the manufacturing of the implants in-house as well as looking into selling them around the world.
The manufacturing is likely to be done at the company’s main UK site in Glasgow.
Shares in Collagen Solutions were flat at 12p at 1.30pm.
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