Glasgow-based Collagen Solutions said it has entered a joint venture agreement with China-based conglomerate Cre8ive.

Collagen Solutions’ chief executive said the purpose of the move was “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.”

The initial structure of the joint venture company will be 60-40 in favour of Collagen Solutions.

Dr. Stewart White, chief executive of Collagen Solutions said: “It is our intention to build our business in China as well as exploring opportunities to expand our activities in finished medical devices.

“We believe that we have found a trusted partner in Cre8ive and that the company can benefit from their many years’ experience in the territory.

“Our control of the JV 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 $2.5 billion in wound care alone by 2020.”

Collagen Solutions is a developer and manufacturer of medical grade collagen components for use in regenerative medicine, medical devices and in-vitro diagnostics.

“In order to maximize the potential of our business and to open up the market in China, the company has entered into an agreement to form a joint venture company, with offices and staff in Beijing,” the Glasgow company said in a statement.

“Cre8ive is a conglomerate, operating solely within the People’s Republic of China, focusing on exclusive or high barrier to entry investment opportunities.

“Collagen Solutions will provide the initial investment into the JV, in a controlled manner, whilst Cre8ive will provide the territory expertise, support services, administrative and regulatory support in Beijing.”