Collagen Solutions PLC (LON:COS) shares jumped 13% higher on Tuesday after the group said it is in “a strong position to deliver a successful financial year” after landing new contracts, according to chief executive Jamal Rushdy.
The regenerative medicines specialist now has orders or contracted development milestones for the 2021 financial year of £4.3mln, or 108% of the sales in the last financial year.
READ: Collagen Solutions inks key supply deal with long term customer
Providing the boost to the top line was a supply agreement with Novabone, announced on July 7, and a new supply agreement with an existing at larger volumes announced on July 15.
“We remain confident that we can generate value to shareholders over the medium term,” CEO Rushdy said in a trading update.
The firm specialises in regenerative medicines and biomaterials. It uses collagen and other tissue to make everything from heart valves to bone grafts right through to wound dressings.
It has another string to its bow in the form of a lead product called ChondroMimetic. This is a minimally-invasive, surgically-placed scaffold which helps repair knee cartilage.
In morning trade, shares in Collagen Solutions were 13.5% higher at 2.95p.
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