Collagen Solutions, the Glasgow-based life sciences company, has warned its full-year losses will be wider than expected after a contract took longer than expected and customers delayed orders due to the Covid-19 outbreak.
A development and manufacturing contract has run over time and means losses will be “materially greater than anticipated”. A one-time write-down of around £900,000 will pass through the company’s accounts, but the firm said this related to the development stage of the contract and didn’t affect its commercial view on the manufacturing phase.
The company, which is quoted on the Alternative Investment Market (AIM), added: “Some customers have recently communicated that they are delaying their investment decisions because of economic and business uncertainty due to the Covid-19 outbreak. The delivery of collagen and tissue products is at risk due to evolving government travel and transport restrictions and potential reduced capacity of import and export offices, testing services, and other aspects of the supply chain.”
Collagen Solutions was spun out from sausage skin maker Devro in 2008, which itself emerged from life sciences giant Johnson & Johnson. Both use collagen – a protein that performs tasks including supporting the structure of connective tissue, muscle and skin – for various purposes.
