CollTech looks to Asian market
WA-based biotechnology company CollTech has appointed a sales agent to market and sell its collagen products to the cosmetic and food industry in Asia.
CollTech plans to produce collagen from sheep from its proposed production facility in Collie.
It garnered significant support earlier this year to raise $4.5 million and float on the Australian Stock Exchange.
Under the latest agreement, CollTech has licensed the use of its name to the newly incorporated CollTech Asia Ltd.
Colltech did not say how much the deal was worth but says Colltech Asia will retain exclusivity to market and sell CollTech’s collagen in Japan, China, South Korea and Taiwan.
According to the agreement, CollTech Asia must sell at least a third of CollTech’s initial collagen production capacity.
CollTech Asia will be owned and operated by companies associated with David Chiu, who also heads up the Australia Taiwan Business Association.
According to CollTech’s announcement, Mr Chiu’s family business is a leading cosmetic pharmaceutical firm in Taiwan with links to Kyorin Pharmaceutical in Japan.
CollTech CEO Michael Pixley said the agreement with Mr Chiu gave CollTech an immediate market presence in Asia, and was likely to result in orders for at least one third of collagen produced in the first year of operation. This would deliver more than $3 million in collagen sales revenue from northern Asia, he said.
CollTech recently exhibited at BIO 2004, the world’s largest annual biotechnology conference in San Francisco, and the World Biomaterials Conference in Sydney.
CollTech said it experienced a heightened level of interest from research institutions and large cosmetic industry participants for its sheep collagen.
This interest is said to be a response to supply constraints on traditional collagen, in particular bovine (cow)-sourced collagen that is free of BSE (mad cow disease).
CollTech added that an announcement of a successful tenderer for its production facility was imminent.
