Alliance Global sees payment to CollPlant raising odds AbbVie options products

Alliance Global Partners analyst Ben Haynor notes that CollPlant (CLGN) announced they had achieved a milestone related to their dermal filler agreement with AbbVie (ABBV), triggering a $10M milestone payment. Although the specifics of the milestone were not disclosed, the press release stated it was a milestone “with respect to the clinical phase dermal filler product.” The news “surprised” the firm as its working supposition was that the dermal filler product remained in the development phase. However, the press release’s language makes clear the product is farther along than Alliance Global Partners had previously believed. The firm thinks this development is a signal AbbVie is engaged with CollPlant and it expects the development to raise the odds AbbVie options one or both of these products. Alliance Global Partners has a Buy rating on CollPlant’s shares with a price target of $22.75.