Collagen Solutions PLC (LON:COS) has signed a new joint venture agreement with Chinese investment vehicle Cre8ive.
The AIM-quoted medical grade collagen group entered into the partnership with a view to maximize the potential of its business and to open up the market in China, it said in a statement.
Cre8ive is a Chinese conglomerate which operates solely in the People's Republic, focusing on opportunities where there are high barriers to entry or exclusivity.
Collagen is providing the initial investment, meanwhile Cre8ive will give its territory expertise, support services, administrative and regulatory support in Beijing. The UK company retains a 60% in the venture.
Dr Stewart White, Collagen Solutions chief executive, told investors that the new partnership will expedite the roll-out of its medical grade collagen to customers in China.
“It is our intention to build our business in China as well as exploring opportunities to expand our activities in finished medical devices,” he said.
“We believe we have found a trusted partner in Cre8ive and that the company can benefit from their many years' experience in the territory.”
White added: “Our control of the JV significantly de-risks this investment, whilst opening the business to significant upside both in terms of the supply of raw materials, but also the ability to increase value added opportunities, in what is clearly a sizeable and growing healthcare market forecast to grow to US$2.5bn in wound care alone by 2020."