Clgn Stock

CollPlant Biotechnologies Ltd. (NASDAQ: CLGN) is a business that has an extremely scalable model that is highly scalable. It is an iconic technological platform, i.e. the intellectual property underlying can be licensed over and over time for royalty payments each year. The collagen produced by the company, which is plant-based, made from tobacco plants, is expected to be licensed to a variety of different markets we believe.

Collagen is one of the proteins that are most plentiful found in the human body. It can be that is found in muscles, bones as well as skin and tendons. It is the component that binds the body. Collagen is a scaffold that helps create structural strength and strength. Exogenous collagen is utilized to treat cosmetic and medical reasons as well as for the repair of tissues in the body.

CLGN’s co-founder and Chief Science Chief Scientist is Prof. Oded Shoseyov. We had a videoconference meeting with Prof. Shoseyov for under two hours earlier in the year. He was joined by Roumell consultant and former FDA Director of the FDA’s Office of Testing & Research, Vince Vilker. Although CLGN is an early stage development company it is the only FDA-approved products for wound healing on its market Europe. Vince me and Vince watched a breathtaking video of an open diabetic wound that was resistant to prior products for healing wounds. CLGN’s collagen was able to heal the wound after just only one application. It is effective, rhCollagen (its plant-based recombinant human collagen) increases the cell’s growth.

Professor Shoseyov is an authentic expression of the country’s “start-up” national energy. His experience is worthy of highlighting having obtained the Ph.D. degree from The Hebrew University of Jerusalem, Israel, Oded is currently an academic faculty member at The Robert H. Smith Institute for Plant Sciences & Genetics as well as the Otto Warburg Minerva Centre for Agricultural Biotechnology and the Harvey M. Krueger Family Center for Nanoscience and Nanotechnology. Oded has published more than 150 scientific publications and filed more than 12 patents. The year 2002 was the time Oded was awarded the Outstanding Scientist Polak Award. Between 1999 and 2009 Oded was awarded with the Kaye Award for Innovative and Applied Research from the Hebrew University of Jerusalem, and in 2012, he was awarded the Israeli Prime Minister Prize for Entrepreneurship and Innovation.

On February 20, 2021 CLGN signed an agreement for a worldwide commercialization contract in partnership with Allergan Aesthetics, an AbbVie (NYSE: ABBV) company (ABBV has 200 billion in market value) for rhCollagen, which is used in soft tissue and dermal filler products. Allergan is the leading manufacturer of dermal filler products has been granted worldwide exclusive rights to use CLGN’s recombinant plant-derived human collagen. In addition, Allergan was granted the rights of first negotiation for CLGN’s technology in two upcoming products. CLGN received $14 million as an upfront payment. CLGN can get an extra $89 million milestone payments, and then is entitled to royalty payments as well as a payment for the production and supply of the rhCollagen product to Allergan. In actual fact, we believe the ABBV collaboration is a key element in CLGN’s current value to the enterprise and provides “free” options for other shots at the field.

CLGN’s market cap is approximately $200 million. There’s also 50 million of cash on its balance sheet and it is debt-free. We believe that the company has the potential to replicate the Allergan deal, by catering to different markets at the end.

On June 20, 2021 CLGN signed an agreement of collaboration agreement together with 3D Systems ( DDD) to offer bioprinted solutions to improve breast reconstruction procedures. Based on the World Health Organization, over 2 million women were diagnosed with breast cancer worldwide in the year 2020. Of those the majority needed the removal of all or a portion of the breast. With CLGN’s Recombinant human collagen made from plants and 3D’s bioprinting devices this partnership could further collaborate with major pharma companies serving the market for breast reconstruction.

Investors could have misinterpreted the motives which led to the cancellation of a license arrangement in conjunction with United Therapeutics ( UTHR) earlier in the year to use bioprinting to facilitate lung transplants. This led to CLGN shares being sold off. Our study suggests that the termination was due to UTHR insisting the company, and CLGN not granting exclusive rights to this application. That is, CLGN refused to provide exclusive rights in this particular case despite the obvious “headline” danger because of their belief of the importance of its IP in light of our study.

For clarity, CLGN must receive FDA approval for rhCollagen. We believe that there is a significant chance that this will happen in the next 12-18 months. As of now, with increasing confidence in the technology of its founders We believe that partnerships will continue to grow. RAMSX now holds about 6 percent of CLGN and is the 3rd largest shareholder. CLGN is not covered by sell-side insurance which we anticipate to change as its exposure increases.

CLGN was 8.0 percent of the RAMSX portfolio at the time at June 30, 2021.