3D Systems (DDD) partnered with Israel-based regenerative medicine giant CollPlant (CLGN) Biotechnologies.
Following the deal, 3D Systems gained 27.7%, while CollPlant shares were up 12.6% on June 22.
3D Systems is a leading provider of 3D content-to-print solutions including 3D printers, print materials, on-demand custom parts services and 3D authoring solutions for professionals and consumers, worldwide. The company gained 201.7% in the past six months and 426.7% over the past year.
Through the deal, the company aims to create 3D bioprinted regenerative soft tissue matrix to simplify and improve breast reconstruction procedures involving implants.
The matrices will be printed using plant-based recombinant human collagen – rhCollagen – that promotes tissue regeneration. It will be designed to match the patient’s anatomy and thereby support the breast implant procedures.
This deal is a step forward in the medical 3D printing industry as well as regenerative surgery industry.
3D Systems CEO Dr. Jeffrey Graves said, “In January of this year, we announced our intention to increase the investment in regenerative medicine and focus on developing and commercializing solutions to change how healthcare is delivered and bring substantial benefits to patients.”
Graves further added, “Through this project we’re embarking on with CollPlant, we’re exploring a novel application that could offer a new reconstruction treatment for breast cancer survivors. It’s inspiring to be involved in a project that has the potential to have such a positive impact on the human condition.” (See 3D Systems stock chart on TipRanks)
On June 1, Needham analyst James Ricchiuti reiterated a Hold rating on the stock.
Ricchiuti said, “DDD is now focused mainly on the core healthcare and industrial markets and continues to evaluate the potential divestiture of businesses that do not align with company’s new strategic focus. We give new management credit for moving quickly to put DDD on a profitable course and launch a much-needed restructuring of the business.”
Overall, the stock has a Hold consensus rating based on 1Buy, 4 Holds, and 1 Sell. The average DDD analyst price target of $25.00 implies 32.2% downside potential from the current levels.
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