Sign up Australia
Proactive Investors - Run By Investors For Investors

Cellmid set to launch its évolis hair care products in the lucrative Chinese market

Bringing a unique and differentiated product range to the world's fastest-growing market.
evolis hair care products
5-year deal with minimum order requirements for each year

Cellmid Limited’s (ASX:CDY) wholly owned subsidiary Advangen has entered into an exclusive agreement to distribute its évolis® anti-aging hair care products in the Peoples Republic of China.

The company has signed a five-year agreement with Beijing Fukangren Bio-pharm Tech Co Ltd for the distribution of évolis lotions and shampoos.

The agreement between Advangen and Fukangren has two key stages:

• A 12-month period where, for and on behalf of Advangen, Fukangren will register the évolis lotions as hair loss products with the Chinese regulator, SFDA (State Food & Drug Administrator); and
• An exclusive distribution agreement for the évolis® lotions and shampoos for five years with minimum order requirements for each year.

READ: Cellmid's year-to-date sales exceed full-year sales for 2017 with further momentum expected

Shares were up almost 10% intra-day to 56.5 cents.

évolis is being launched in China following extensive market research regarding product demand, fit and pricing against comparable products within the Chinese market.

The first-in-class FGF5 inhibitor technology of évolis with natural active ingredients provides it with a unique marketing proposition and a significant competitive edge.

Adding further differentiation in the Chinese market is the highly desirable “Australian made” and “Japanese made” status of the évolis products.

Fukangren has the potential to make évolis a success in China

Beijing Fukangren, established in 2000, is a rapidly growing pharmaceutical company with over 400 staff, distributing over 300 products including generics and drugs under licence and profit arrangement.

Fukangren also has a specialist regulatory affairs team with a strong track record of successful applications with the Chinese regulator, SFDA.

Cellmid chief executive officer Maria Halasz said: “This agreement is an important step towards bringing évolis to the Chinese people, and we believe Fukangren has the resources, capacity and market know-how to make évolis a success in China.”

Chinese market opportunity

Three recent surveys of university students identified hair loss concerns among younger Chinese citizens, with 60-70% of respondents indicating that they were suffering from hair loss or had hair loss concerns.

Cellmid has a significant potential in China, given the magnitude of the country’s population and the size of its new middle class, estimated at over 100 million households with growing disposable income.

Halasz added: “The Chinese market is a key element of Cellmid’s growth strategy and we expect it will contribute significantly to growing our revenues in the coming years.”

View full CDY profile View Profile

Cellmid Ltd Timeline

Related Articles

June 05 2018
While tricky, the last year has seen Abzena increase its customer engagement with its integrated discovery, development and manufacturing service offering
July 26 2018
Under former chief executive Peter George and his successor Shaun Chilton, Clinigen has been transformed via a series of well-judged, quickly integrated and cash generative acquisitions
DNA sequence
July 12 2018
The cell therapy specialist also reported there had been industry interest around its main programmes

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use