China's Flon Medical may raise investment in Israel's CollPlant
TEL AVIV May 28 (Reuters) - China's Flon Medical Material Co is considering increasing its investment in CollPlant Holdings, an Israeli producer of plant-derived human collagen, a protein vital for tissue repair.
"We have invested $2.5 million in CollPlant and we might increase this amount," Flon managing director Qian Xiaojin told Reuters during a trip to Israel.
Flon, which holds 7 percent of CollPlant, is seeking to help the Israeli company win Chinese regulatory approval and to manufacture and distribute its products in China.
"We have signed a term sheet but not a final agreement," CollPlant Chief Executive Yehiel Tal said. "Both sides want this cooperation."
The first product would be a gel to treat chronic sores, for example in patients with diabetes. CollPlant expects to obtain approval for this product in Europe this year.
"Israel is leading the world in creativity and innovation in biotech and medical devices," said Qian, who was attending a conference sponsored by Israel's Cukierman Investment House and the Wujin Economic Zone.
He said his company is also seeking technology for dental implants and air filters, with the aim of transferring technology to China to manufacture there. (Reporting by Tova Cohen)