Cellmid Limited (ASX:CDY) has partnered with EAS Advisors to support expansion of its hair growth products into the U.S. hair care market, which reached sales of US$11.6 billion in 2014.
Cellmid lays claim as the only company globally with an FGF5 inhibitor hair growth product on the market.
New York-based investment advisory firm EAS was founded by Eddie Sugar in 2008.
Cellmid reported strong sales growth for FY2015 with its sales and advertising campaign expected to further grow revenues of its évolis® branded FGF5 inhibitor consumer products in Australia.
It plans to replicate its strategy of a retail distribution model based initially on pharmacies in the U.S where there are more than 20,000 pharmacies.
In addition, its proprietary active ingredients are suitable for out-licensing to other brand owners either as active ingredients or fully formulated products.
EAS will work with Cellmid to provide strategic support in the company’s U.S. growth activities and exposure to local investors.
Maria Halasz, chief executive officer, commented:
“EAS has a successful track record assisting Australian companies maximise their U.S. growth potential. We are delighted to be one of the select companies they decided to work with.”
In the fourth quarter of FY2015, Cellmid’s consumer health business delivered sales of $960,000 bringing full-year sales up to $1.84 million for its FGF5 inhibitor hair growth products.
This is up 63% on the last financial year.
It also lays the foundation for FY2016 sales to significantly exceed the previous year.
In July, it raised $4 million through an oversubscribed placement of shares priced at $0.03 to leverage increasing sales and further expand its growth in Australia and internationally.
The agreement with EAS Advisors will help drive sales of Cellmid’s hair growth products in the major U.S. market.
Sales in Australia already expected to grow given that the company has yet to ship products to 70% of its planned distribution while its GP sales force only started in May.
In Japan, it has broadened sales channels to five from two. This includes private label, duty free retail, TV shopping, export and website sales.
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