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.
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.”