BioCentury
ARTICLE | Strategy

The revenue boost from Collagraft approval

June 7, 1993 7:00 AM UTC

Collagen Corp. (CGEN) received FDA approval to market Collagraft Bone Graft Matrix, a bone graft alternative used to treat bone fractures and traumatic bone defects. David Foster, CFO at CGEN, said the product should generate $7 million to $10 million in sales in its first year and could be a $32 million product by its fourth year, of which CGEN would receive one-third according to its distribution arrangement.

Although Collagraft will help to turn around CGEN's earnings picture, Foster said, "we won't go from a $5 million a year loss to a $5 million a year gain on this product alone." For the quarter ended March 31, CGEN reported product revenues of $10 million and an operating loss of $1.5 million...