Scarless Laboratories Inc., an early stage biotechnology company based at UCLA, has received federal clearance to conduct two clinical studies of its patented compound to heal scar tissue.

The 14-year-old company said the U.S. Food and Drug Administration had given a green light for a phase I and phase II trial to study a peptide to promote wound healing and improve scar appearance.

The peptide known as SLI-F06 was based on more than 20 years of research on the Westwood campus. The compound works by biologically nudging cells to move to the wound faster to promote healing, reduce scarring and increase wound tensile strength.

Scarless Labs aims to target a global scar treatment market worth $19.2 billion in 2017.

There is no FDA-approved treatment that biologically activates cells to promote tissue repair rather than excessive scarring, executives say.

“The ability to biologically activate wound cells to affect faster and better tissue repair with less scarring can be tremendously impactful for patients suffering from disfiguring hypertrophic or keloid scars such as burn patients,” said UCLA professor Dr. Chia Soo, co-founder of Scarless Laboratories and vice chair for research for UCLA Plastic and Reconstructive Surgery, said in a statement.

“Faster and better healing can also benefit chronic wound patients, especially diabetic foot ulcer patients, to reduce the risk of limb amputation from non-healing wounds.”

Scarless Labs, founded by UCLA professors Soo, Dr. Kang Ting and Zhong Zheng, is now led by Chief Executive Carol Danielson and is now housed at the Magnify incubator at UCLA’s California NanoSystems Institute.

It has received $7,222,000 in funding to date from the National Institutes of Health, according to the agency, as well as unspecified funds from private investors.

Health business reporter Dana Bartholomew can be reached at [email protected]. Follow him on Twitter @_DanaBart.