The Sydney-based biotechnology company has therapeutic assets under development and a revenue-generating consumer health products business.
Cellmid has been granted a trading halt today by the ASX pending the announcement of a “proposed capital raising”.
The halt will remain in place until the start of normal trading on Monday, October 14, or when an announcement is released to the market, whichever occurs earliest.
The company, whose shares last traded at 22.5 cents, is working towards operational profitability for its consumer business in financial year 2020.
Consumer sales growth up
Cellmid increased consumer sales growth by $1.7 million, or 30%, to $7.4 million and grew total revenues for the company $9.6 million, or 58%, to $5.9 million in the 2019 financial year.
It is executing a planned split of two of its businesses – Lyramid Limited and Advangen Limited – by the end of this year.
Cellmid managing director and CEO Maria Halasz wrote in the company’s recent annual report: “With the sharp focus on partnering our midkine assets, and an improved operational performance in our consumer business, we are well prepared to execute on our objectives of operational profitability for our consumer business in FY2020 and separating Lyramid and Advangen Limited by the end of 2020.”
Cellmid expects to return to trading by start of trade on Monday, October 15, 2019 or earlier when it announces its capital raising proposal to the market.
What are Cellmid’s businesses?
Life sciences company Cellmid has the largest and most comprehensive portfolio of novel targets midkine (MK) and FGF5 globally.
Its three wholly-owned subsidiaries Lyramid, Kinera and Advangen develop and markes therapies and diagnostics for inflammatory and fibrotic diseases, cancer, ischemic diseases of the heart and hair loss.
What do Cellmid’s businesses do?
The company's Advangen business has a suite-of anti-ageing hair loss (alopecia) products marketed in international markets under the brands Evolis and Jo-Jun.
Advangen's assets inhibit the hair cycle regulator FGF5.
Lyramid is a therapeutics division that draws on a large bank of antibodies available to Cellmid in a number of preclinical research programs.
Its pipeline of antibody therapies target MK in chronic inflammatory diseases, fibrosis and cancer.
The division has CAB102 and CAB101 as its lead candidates.
CAB102 is a humanised monoclonal antibody targeting MK for use in solid tumours.
In vivo pre-clinical studies in living organisms have shown anti-MK antibodies act to inhibit tumour growth, tumour spread (metastasis) and tumour blood vessel growth (angiogenesis) and reduce chemoresistance in xenograft models.
CAB102 is in a late preclinical development stage asset that has been assessed for formulation, storage and stability and manufacture scale-up.
The therapeutic asset performed well in toxicology studies with no abnormal clinical pathology or dose-limiting toxicities noted.
A third division, Kinera, is developing MK as a therapy for acute ischemic injury.
Its midkine protein MK103 is designed for use in heart failure and chronic heart conditions.
The company’s securities closed yesterday at 22.5 cents.