COLLPLANT BIOTECHNOLOGIES REPORTS 2024 FINANCIAL RESULTS AND PROVIDES A CORPORATE UPDATE
CollPlant announces six-month study data from its regenerative breast implant program, which could provide a revolutionary alternative to women for aesthetic or medical purposes and aims to address a $3 billion market opportunity
Recently received a $2 million development payment from AbbVie
Conference call to be held today at 10:00 a.m. U.S. EDT
REHOVOT, Israel, March 26, 2025 /PRNewswire/ -- CollPlant Biotechnologies (NASDAQ:CLGN), or "CollPlant", a regenerative and aesthetics medicine company developing innovative technologies and products based on its non-animal-derived collagen for tissue regeneration and medical aesthetics, today announced its 2024 financial results and provided a corporate update.
"This past year to date, we have progressed on all fronts - from advancing our collaborative programs, to gaining momentum on our proprietary programs as well as our marketed products. Specifically, we leveraged additional preclinical studies findings, refined a commercial design of our regenerative breast implants, gained an additional U.S. patent related to our photocurable dermal filler and also broadened the distribution network for our commercial product, Vergenix STR. On the aesthetic medicine front, following a development achievement we received a $2 million payment from our collaboration partner, AbbVie. In tandem with our progress, we have also been very careful to optimize our costs. Therefore, we expect that our cash position, that has been supported by both milestone payments and incremental sales revenue, will allow us to be selective and support a capitalized path in the interest of our shareholders", commented CollPlant's Chief Executive Officer, Yehiel Tal.
Collaboration Updates
AbbVie Collaboration
Under CollPlant's existing development and commercialization agreement with development partner, AbbVie, CollPlant has granted AbbVie a worldwide exclusive license to use CollPlant's rhCollagen technology in combination with AbbVie's proprietary technologies for the development and commercialization of dermal and soft tissue fillers. The dermal filler product candidate is currently in the clinical phase and AbbVie is collecting data and conducting a review of interim results from the first cohort of patients enrolled under the trials initiated in 2023. Next steps for the program are to be determined by AbbVie upon concluding their assessment.
In February 2025, following a development achievement, CollPlant received a $2 million payment from AbbVie, according to the development and commercialization agreement.
Stratasys Collaboration
On August 19, 2024, CollPlant announced the initiation of a pre-clinical study with 200cc commercial-sized regenerative implants printed using CollPlant's bioinks and Stratasys' (NASDAQ:SSYS) Origin® 3D printer. The collaboration between CollPlant and Stratasys is currently focused on the development of a bioprinting solution for CollPlant's breast implants, in addition to finding solutions to scale-up the implant's fabrication process.
Recent Corporate Updates
Regenerative Breast Implants
On June 6, 2024, CollPlant announced that it has successfully printed, for the first time, breast implants of 200cc, which are commercial size. These implants were printed using CollPlant's proprietary rhCollagen-based bioinks. Currently, there are no commercial products that allow regeneration of soft tissues such as the breast. The program goal is to develop and commercialize novel regenerative implants that provide a revolutionary alternative to the implants that are currently on the market.
In August 2024, CollPlant launched a preclinical study with the 200cc, clinical-sized breast implants, which were also produced with enhanced durability. The surgical protocol was refined to include implantation through a small incision while preventing implant displacement or inversion. Analysis of MRI and ultrasound data conducted in 2025 confirmed tissue integration and vascularization, offering valuable diagnostic tools for future clinical applications. At six months post-implantation, one study arm has shown promising outcomes, with the implant demonstrating vascularization and rapid tissue ingrowth within the clinical-sized implant. No complications, such as capsule formation, calcifications, and local tissue reactions were observed. Additionally, volume retention and mechanical properties were maintained in the successful study arm.
Following this study, Collplant will continue to optimize the regenerative breast implants to ensure longevity and re-modelling of the neo-vascularized tissue.
Mr. Tal added, "CollPlant's paradigm shifting breast implants in development are unique in that they are designed to regenerate breast tissue as well as have inherent safety advantages. We have been testing implants that are commercial size after upgrading our bioprinting process and other capabilities to fabricate these implants. We are very encouraged by the results observed so far. This is one of our lead programs that has the potential to position CollPlant as a market leader in the field of regenerative medicine."
Earlier, in 2024, three-month data showed evidence of well-developed connective tissue containing blood vessels (i.e., neovascularization) within the implant. Progressing tissue ingrowth within the implant was also observed confirming tissue regeneration. An initial biodegradation process was observed, while preserving the original structure of the 3D breast implant. No adverse tissue reaction was observed, confirming the safety profile of this novel implant in development.
In the U.S. alone, hundreds of thousands of people each year experience adverse events that range from autoimmune symptoms to the very serious breast implant-associated anaplastic large cell lymphoma (BIA-ALCL). CollPlant's breast implants, comprised of the Company's proprietary plant-derived rhCollagen and other biomaterials, are expected to regenerate breast tissue without eliciting immune response and therefore may provide a revolutionary alternative for aesthetic and reconstructive procedures, including postmastectomy for cancer patients.
In February 2025, CollPlant announced the expansion of its distribution channels for its Vergenix™ STR product, in Europe and Asia. VergenixSTR is based on the Company's rhCollagen technology and is intended for the treatment of tendinopathy by promoting healing and repair of tendon injuries in a variety of tendons including the elbow tendon (for treatment of "tennis elbow"), rotator cuffs, patellar tendons, the Achilles tendon, and hand tendons. Specifically, CollPlant recently signed distribution agreements for VergenixSTR with distributor companies located in the Netherlands, Turkey and India, for sales in the territories of the Netherlands, Belgium, Luxemburg ("Benelux"), Spain, India and Turkey.
Also in February, CollPlant announced that it had initiated a cost cutting and workforce reduction plan. CollPlant indicated that its updated allocation of resources results in a reduction of its workforce by approximately 20%, and, based on current estimates, will allow it to continue its business activities, including those related to its primary research and development programs until at least the second quarter of 2026.
Intellectual Property
RhCollagen Curable BioInks Portfolio of Products
CollPlant announced today that the Japan Patent Office (JPO) has granted a second patent on Patent Application no. 2023-101072 securing patent protection on CollPlant's portfolio of rhCollagen curable BioInks in Japan until 2038.
This newly allowed application is related to CollPlant's innovative curable Collink.3D® BioInk pipeline, consisting of the first and only line of human collagen BioInk products based on chemically modified plant-derived rhCollagen that is mass-produced with high purity and consistency. Collink.3D enables scalable and reproducible biofabrication of tissue models, tissues, and organ transplants, while perfectly mimicking the native properties of tissues and organs. Additionally, it provides the advantage of being animal-free, has the properties of optimal rheology at room temperature, supports high viability of different cell types and is biocompatible and non-immunogenic.
Photocurable Dermal Filler Product Candidate
Additionally in February 2025, CollPlant announced it was granted U.S. Patent No. 12,186,449 related to its photocurable dermal filler product candidate. The patent relates to polymerizable solutions that are comprised of modified recombinant human collagen (rhCollagen) and other constituents such as hyaluronic acid. The patent will expire in 2039.
Corporate Governance
In July 2024, CollPlant announced the release of its inaugural Environmental, Social and Corporate Governance (ESG) and Sustainability Report covering 2023.
The Company's first report details the initiatives that CollPlant has taken to adopt an ESG strategy with a focus on the pillars that represent the areas with the highest impact. In aligning the Company's operations with its ethical commitments, the Company plans to enhance plant-based production, reduce emissions, and deliver safe and reliable medical solutions. The report reflects CollPlant's wide commitment to fostering environmental sustainability and enhancing human health, as well as advancing social and corporate governance objectives that contribute to the Company's impact.
Year-Ended December 31, 2024 Financial Results
GAAP revenues for the year ended December 31, 2024, were $515,000 compared to $11.0 million in the year ended December 31, 2023. The decrease in revenue is mainly related to (i) the achievement of a milestone with respect to the AbbVie Agreement in 2023, which triggered a $10.0 million payment and (ii) a $444,000 decrease in sales of rhCollagen products and VergenixFG.
GAAP cost of revenues for the year ended December 31, 2024, was $1.6 million, compared to $2.0 million for the year ended December 31, 2023. The decrease in cost of revenues of approximately $400,000 is mainly related to: (i) a decrease of $312,000 in royalty expenses to the IIA, mainly relating to the milestone achievement under the AbbVie Agreement, (ii) a decrease of $324,000 related to bioinks and rhCollagen sales, offset by $247,000 related to inventory impairments.
GAAP gross loss for the year ended December 31, 2024, was $1.1 million, compared to gross profit of $9.0 million for the year ended December 31, 2023.
GAAP operating expenses for the year ended December 31, 2024, were $16.1 million, compared to $16.5 million, for the year ended December 31, 2023. The decrease of approximately $400,000 is mainly related to a decrease in general, administrative and marketing expenses comprised of: (i) $287,000 in share-based compensation expenses, and (ii) $152,000 in insurance policy costs. On a non-GAAP basis, the operating expenses for the year ended December 31, 2024 were $14.4 million, compared to $14.5 million for the year ended December 31, 2023. Non-GAAP measures exclude certain non-cash expenses.
GAAP financial income, net, for the year ended December 31, 2024, totaled $642,000, compared to $493,000 for the year ended December 31, 2023. The increase in financial income, net, is due to an increase in exchange rate differences.
GAAP net loss for the year ended December 31, 2024 was $16.6 million, or $1.45 basic loss per share, compared to a net loss of $7.0 million, or $0.62 basic loss per share, for the year ended December 31, 2023. Non-GAAP net loss for the year ended December 31, 2024, was $14.9 million, or $1.3 basic loss per share, compared to $5.2 million loss, or $0.46 basic loss per share, for the year ended December 31, 2023.
Balance Sheets and Cash Flow
The Company's cash and cash equivalents balance as of December 31, 2024 was $11.9 million.
Cash used in operating activities was $14.1 million during the year ended December 31, 2024, compared to $2.8 million for the year ended December 31, 2023. Cash used during the year ended December 31, 2023 includes the $10 million milestone payment from AbbVie.
Net cash used in investing activities was $539,000 during the year ended December 31, 2024, compared to $1.2 million in net cash that was provided by investing activities during the year ended December 31, 2023.
Net cash provided by financing activities was $9,000 for the year ended December 31, 2024 compared to $1.1 million for the year ended December 31, 2023. Cash provided by financing activities is attributed to proceeds from the exercise of warrants and options into shares.
Conference call information
CollPlant will host a conference call and audio webcast to discuss its financial results and corporate updates on Wednesday, March 26th at 10:00 a.m. Eastern Daylight Time.
To participate in the conference call, please use the dial-in information below:
U.S. investors: 1-877-407-9716 Investors outside of the U.S.: 1-201-493-6779 Israel investors: 1-809-406-247Conference ID: 13750725
Note, you can avoid long wait times for the operator by using the Call me™ feature and clicking the link below 15 minutes prior to the scheduled call start time:
https://callme.viavid.com/viavid/?callme=true&passcode=13728588&h=true&info=company-email&r=true&B=6
Webcast information
A live webcast will also be available in listen-only mode and can be accessed here or via the link posted on the News & Events section of the CollPlant Investor relations website. A replay of the webcast will be available following the conclusion of the live broadcast and will be accessible on the Company's website for a limited time.
Submit questions to management in advance of the call
To ask management a question ahead of the call, please email Dan Ferry at LifeSci Advisors, LLC up until 24 hours before the event at
About CollPlant
CollPlant is a regenerative and aesthetic medicine company ushering in a new era of medical solutions with a focus on 3D bioprinting of tissues and organs, tissue repair and medical aesthetics. The Company's products are based on its rhCollagen (recombinant human collagen) produced with CollPlant's proprietary plant-based genetic engineering technology. These products address indications for the diverse fields of tissue repair, aesthetics, and organ manufacturing.
In 2021, CollPlant entered into a development and global commercialization agreement for dermal and soft tissue fillers with Allergan, an AbbVie company, the global leader in the dermal filler market.
For more information about CollPlant, visit http://www.collplant.com
Contacts
CollPlant:
Investor:
Eran Rotem
Daniel Ferry
Deputy CEO & CFO
Managing Director
Tel: +972-73-2325600
LifeSci Advisors, LLC
COLLPLANT BIOTECHNOLOGIES LTD.
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
11,909
$
26,674
Restricted deposit
248
241
Trade receivables, net
150
-
Inventories
440
714
Other accounts receivable and prepaid expenses
433
393
Total current assets
13,180
28,022
Non-current assets:
Restricted deposit
118
57
Operating lease right-of-use assets
2,991
3,070
Property and equipment, net
2,290
2,789
Intangible assets, net
131
188
Total non-current assets
5,530
6,104
Total assets
$
18,710
$
34,126
COLLPLANT BIOTECHNOLOGIES LTD.
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands, except share data)
December 31,
2024
2023
Liabilities and shareholders' equity
Current liabilities:
