COS.L Share News (COS)

(ShareCast News) - Developer and manufacturer of medical grade collagen for use in regenerative medicine, Collagen Solutions, announced a new joint venture with Cre8ive on Tuesday in a bid to expand its market in mainland China.The AIM-traded firm said, in order to maximise the potential of its business and open up the market in China, it has entered into the agreement to form a venture with offices and staff in Beijing.It said Cre8ive is a domestic Chinese conglomerate focusing on exclusive or high barrier to entry investment opportunities.Collagen Solutions will provide the initial investment into the joint venture, while Cre8ive will provide the territory expertise, support services, administrative and regulatory support in Beijing.The initial holding in the venture will be a 60-40 split in favour of Collagen Solutions."The purpose of the joint venture company will be to expedite the marketing and supply of our medical grade collagen materials and regenerative medicine products to customers within the People's Republic of China," said Collagen Solutions chief executive officer Dr Stewart White."It is our intention to build our business in China as well as exploring opportunities to expand our activities in finished medical devices."Dr White said the company has found a trusted partner in Cre8ive, and can benefit from their many years of experience in the territory."Our control of the venture 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 $2.5bn in wound care alone by 2020."