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Cellmid signs hair growth supply agreement with Taiwan's Maywufa

The agreement allows the company to tap Maywufa’s established stores and sales network. Maywufa owns the largest pharmacy chain in Taiwan to drive growth of its FGF5 inhibitor hair growth products.

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Cellmid Limited (ASX:CDY) has made its first private label entry into the US$5 billion global hair growth and anti-aging hair care market with the signing of an agreement with Taiwan’s Maywufa Company Ltd (TPE:1731).

This combines Maywufa’s established Taiwanese brand name and extensive distribution channels with the company’s scientifically and clinically validated FGF5 inhibitor hair growth products.
   
Maywufa owns the largest pharmacy franchise in Taiwan with more than 200 stores. Its sales network covers over 5,000 drug stores, general practitioners and hospitals.

It acts as exclusive distributor or agent to several large pharmaceutical and cosmetics companies representing major international brands as well as manufacturing and marketing products under its own Maywufa brand.

Under the agreement, Cellmid will manufacture and sell to Maywufa FGF5 inhibitor hair growth products under their brand.

Selling its FGF5 inhibitor products through private label supply agreements is a key expansion strategy for Cellmid, which is currently in negotiations with a number of international brand owners to grow this business further in the future.

Utilising established brand names and distribution channels compliments Cellmid’s drive to build its own évolis® brand.   


FGF5 Inhibitor

Cellmid’s FGF5 inhibitor hair growth products are scientifically and clinically validated to reduce hair loss and increase the number of growing hair follicles.

They have been developed for moderate to medium level hair loss.

In a recent blinded, placebo controlled clinical study they showed a statistically significant 80.2% reduction in hair loss over 112 days (16 weeks) with twice daily use.

Hair differentiation, or anagen/telogen ratio, improved with an increase of 44.2% in growing hair follicles during the same period as analysed by the Van Scott “hair pluck” method.

Hair release and recovery was quantified by PhotoGrammetrix™ measurements and showed an improvement by a statistically significant 143.3%.

“This is the first private label contract for us that is with the biggest pharmacy chain in Taiwan,” chief executive officer Maria Halasz told Proactive Investors.

“The upside is their sales network that services 5000  plus locations, including drugstores, GPs and hospitals plus they are expanding into China.”


Recent Activity


In May, Cellmid secured a $1 million research and development loan funding from Platinum Road to accelerate the successful launch campaign of its évolis® hair growth products and proceed with the toxicology component of its preclinical anti-midkine antibody program.

The company also anticipates significant increase in sales in the fourth quarter of the 2015 financial year and beyond due to the expansion of pharmacy distribution in Australia and its Japanese growth.


Analysis

The private label supply agreement with Maywufa Company is part of Cellmid’s expansion strategy and is anticipated to drive further growth of its FGF5 inhibitor hair growth products.

Given that the company already anticipates significant increase in sales in the fourth quarter of the 2015 financial year, this could drive sales in the 2016 financial year and beyond.

Selling the Company’s FGF5 inhibitor products through private label supply agreements is a key expansion strategy and opportunity for fast growth of its product.

Maywufa owns the largest pharmacy franchise in Taiwan with more than 200 stores. Its sales network covers over 5,000 drug stores, general practitioners and hospitals.

The Taiwanese agreement provides a solid platform for entry into the China market in 2016. The global anti-aging hair care market is estimated at $5 billion. Cellmid is positioning itself to earn a piece of this growing pie.



Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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