.19 Jul 2016 09:05
research report out:
"Collagen Solutions is a biomaterials company developing and manufacturing medical grade collagen components for use in medical devices, in vitro diagnostics, and regenerative medicine. New leadership has formed a global commercialisation team and introduced a number of initiatives to build on the strong base business clearly visible in the 2016 results, and execute on a scalable growth strategy. COS is also establishing a pipeline of finished devices, such as ChondroMimetic, to add incremental value to the business. These initiatives are enhancing significantly the value of the company which is not being reflected in the current share price."
and
"Valuation: Our DCF valuation has risen 16% to £54m or 32p per share on the
back of these improved results. There are few quoted competitors that could be
considered as comparator companies for valuation purposes. The closest,
Innocoll, is developing proprietary products and commands an EV of £140m.