Under the terms of the collaboration, US specialty pharmaceutical company Innocoll will incorporate TGR's proprietary wound healing compound TGR-265 into its collagen-based sponge and membrane formats using the CollaRx technology.

"We are excited to be working with TGR BioSciences on development of this novel product concept combining both the wound healing properties of native collagen and TRG-265," Innocoll Technologies research and development executive vice president Joan FitzPatrick said in a statement.

"We believe there is potential for their mechanisms of action to be both complementary and synergistic, which could then create a highly potent, elegant, and cost-effective wound healing product."

The CollaRx technology platform is a biocompatible and fully bioresorbable collagen matrix for localized drug delivery, which contains purified type I fibrillar collagen.

The collagen can be manufactured in the form of a lyophilized sponge or a film-cast membrane which can be surgically implanted or applied topically to wounds. Drugs can be delivered locally.

Innocoll's current lead product using the technology is Gentamicin Surgical Implant, a biodegradable leave-behind implant indicated for the treatment and prevention of surgical site infection in both hard and soft tissue and has already been approved in 49 countries in Europe, Latin America, Middle East, Africa and Asia.

Innocoll is using the technology to develop other site specific, local delivery of antibiotics, anesthetics, anticancer agents and tissue regeneration proteins and peptides.

In the current collaboration, TGR-265 will be used. TGR-265 is a naturally derived bioactive protein that has been shown through extensive in vitro and in vivo pre-clinical testing to stimulate the fibrogenic response, production of host type I collagen and deposition of extracellular matrix.

The in vivo release of drug from the CollaRx matrix takes place via a combination of diffusion and natural breakdown of the collagen to provide rapid and prolonged release.

The CollaRx matrix, which is biodegraded by natural enzymatic action and fully resorbed, also provides a scaffold for cell migration and proliferation, and stimulates growth of cytokines and growth factors.

"This strategic collaboration is indicative of Innocoll's intention to fully exploit its technology platforms through partnership with innovative biotechnology and pharmaceutical companies looking to deliver their drugs locally. Despite investing heavily in the late stage clinical development of our own internal pipeline of products, we believe that partnerships such as this with TGR BioSciences are important fro providing the company with a wide and diversified portfolio of development projects for long term, sustainable growth," Innocoll president and chief executive Michael Myers said.

TRG would fund the development of the formulated products.

Last week, Innocoll announced the sale of its CollaRx(R) Gentamicin Surgical Implant and European sales and marketing infrastructure to EUSA Pharma, a transatlantic specialty pharmaceutical company focused on oncology, pain control and critical care.

The transaction provides EUSA with rights to the product for all worldwide markets except the US.

Also last week, the company announced to was forming a joint venture with Bourne Partners to build a US advanced wound care business to be called CollMED Laboratories.

CollMED would commercialize and develop four wound care products for the US, including CollaGUARD, approved by the US Food and Drug Administration late last year, which is a bioactive dressing with silver for treatment of dermal wounds with mild infection or at risk or infection that is based on the CollaRx technology.