Innocoll has developed biocompatible, biodegradable and fully resorbable drug delivery matrices based upon collagen, the most abundant protein in the human body. These technology platforms, trademarked as CollaRx® and Liquicoll®, can be prepared in the form of a lyophilized CollaRx sponge, a cast CollaRx membrane film, or an aqueous collagen dispersion/gel (Liquicoll).

The CollaRx formats can be implanted at the time of surgery or can be applied topically to a chronic or traumatic wound, whereas the Liquicoll format can also be subcutaneously or intra-articularly injected as a depot or used to fill a tissue defect. Depending upon the application site, release of drug to the surrounding soft tissue or bone can be controlled for localized action over several hours to several days or even weeks.

Collagen offers a series of advantages over synthetic biomaterials. First and foremost, it is fully biodegradable and resorbable via natural pathways and has a long history of safe and effective use in medical products. It plays an integral role in the in the repair and replacement of both hard and soft tissue by providing an extracellular scaffold, stimulating certain growth factors, and propagating tissue granulation. As such, collagen implants and dressings are specifically used to accelerate the natural process of wound healing. Collagen is also a natural hemostat and a wide variety of collagen- based products are used in surgery and dentistry to prevent hemorrhage. The CollaRx and Liquicoll drug delivery systems therefore provide for triple action; control of bleeding, wound healing, and localized therapeutic or prophylactic action of any impregnated drug.

Therapeutic classes where localized delivery is thought to have particular application include; antibacterials, antifungals, anesthetics, analgesics, anti-inflammatories, anti- neoplastics, growth factors/modulators and anti-scarring agents.

The CollaRx technology is already scaled-up and commercialized. Products are manufactured AT the Company's facilities in Germany and South Africa. The lead product, Collatamp G, delivers the antibiotic gentamicin and is marketed throughout the EU.

In summary, the benefits offered by these technologies over competing short-duration implants are as follows:

• Fully biocompatible and biodegradable with a long history of safe and effective use.

• Can be applied to a topical wound, surgically implanted, or (in the case of Liquicoll) injected into a subcutaneous tissue defect or joint.

• Suitable for a wide range of active ingredients (hydrophilic, lipophilic and macromolecules), including combinations thereof.

• High drug loading capability offers a very broad dosing range from micrograms to grams.

• Rate of drug release can be controlled by formulation and process variations.

• Ease in the delivery of multiple drug combinations

• Ready-to-use formats for ease of administration - no need for any admixing in the operating theatre.

• Products can be implanted using laparoscopy and are easily manipulated according to the site of application.

• CollaRx membrane is transparent allowing visualization of covered organs or the wound bed.

• Ability to deliver macromolecules and otherwise difficult to deliver drugs

• Solid, flexible form keeps the drug in the target area and will not 'run'

• No need for in-dwelling catheters, epidurals, or removal post-use

Co-development partnerships with pharmaceutical and biotechnology companies that are interested in using the CollaRx and Liquicoll technologies to a) create novel line extensions of existing brands or b) develop new proprietary drugs where localized delivery is necessary or desirable.