A number of significant assets belonging to a Midlothian-based life sciences firm have been bought by an investment group, in a deal that will focus on realising missed opportunities.
Angel, which manufactures and supplies clinical bio-materials for the pharmaceutical and biotech trades, called in administrators with cash flow difficulties in February.
With existing debts affecting cash flow throughout working Scotland, it is a common story. Many companies are fighting back with new approaches, such as factoring and invoice discounting though, or seeking investment.
The investment being made at Angel effectively sees the existing company wound up, with a new company, Collbio, being assembled. The new company sees the board made up of former Angel managers and representatives of the investment group.
Based in Glasgow, its prime focus will be the production of medical grade collagen. Despite cash flow difficulties, a new contract win suggests success for the new company. Collbio’s new chief executive, Stewart White, said:
“I think that focus and drive can certainly realise the opportunities for the business moving forward.”
White believes the use of collagen will be a growth area. Presently, it is used in Scottish medical theatres primarily as a building material for the growth of new cells outside of the body, before implantation surgery.
Though collagen will be the focus, it is likely Collbio will also run with another new contract. Angel recently won a deal to provide materials for the treatment of diabetic foot ulcers in the US, suggesting the life sciences sector could be regaining strength.