viewCellmid Limited

Cellmid on track for profitability in FY2022 with planned revenue growth in ecommerce and new product launches

The company has made progress in its new product development program with a hair loss supplement formulation completed and manufacturing and ecommerce set to launch during the first half of 2022.

Cellmid Limited -
Cellmid is well-funded to implement its growth strategy after completing a $4.5 million capital raise in March, taking cash reserves to around $8.3 million after costs.

Cellmid Ltd (ASX:CDY) is on track for profitability in the 2022 financial year with planned revenue growth in ecommerce, new distribution channels to China and new product launches.

During the March quarter, consumer health sales increased by 12% on pcp, due to an increase in sales of Cellmid’s evolis branded platforms and through ecommerce retail partners.

On March 31 the company completed an underwritten rights issue and raised a further $4.5 million to boost its ecommerce capabilities, to provide adequate funding to manage the cash flow demands of its Chinese distribution agreements and for general working capital.

Most of the net proceeds of the right issue, $3.8 million was received on April 1 bringing Cellmid’s total cash balance to $8.3 million following the reporting period.

Strong financial position

With this cash balance, Cellmid highlighted in its latest quarterly report that the business remained in a strong position to deliver on its profitability objectives and strategy for FY2022.

This includes new product development such as a hair loss supplement formulation completion and manufacturing as well as ecommerce set for launch in the first half of 2022.

A range of new topical products, specifically formulated for the Asian hair market under the evolis® brand are also planned for manufacture and launch.

In addition, Cellmid has started discussions with other brands for co-development of innovative products.


Consumer health sales in Australia were up 7% in Q3 FY2021 on pcp to $240,000 (Q3 FY2020: $224,000) and even for the FY2021 financial year to date on pcp at $1.03 million.

Online sales are improving, however, the Australian pharmacy channel remains challenging.

In response to the shift in channels, staff changes have also been implemented.

Aeon International, the company’s evolis® distributor in China, made further orders in February to fully stock the branded T-mall international store.

The six months advertising and marketing plan is well underway to generate user reviews and increase brand awareness and includes engagement of influencers.

Cellmid experienced its best performance in March when the number of transactions was the highest ever.

Approximately 20% of all sales originated on Google ads, where cost per click and cost per conversion were both down significantly.

Website traffic was up 6% in March, with the majority of new visitors (84%). Facebook continues to be challenging from a sales perspective, however, traffic continued to increase during Q2 from this channel.


Consumer health sales in the US were up 36% in Q3 FY2021 on pcp to $133,000 (Q3 FY2020: $98,000) and down 9% for the FY2021 financial year to date to $452,000.

Cellmid’s ecommerce revenue increased during the quarter through online retailers Amazon and Dermstore.

The retail environment in the US remains uncertain and prestige retail and salon sales continue to be negatively impacted by COVID-19.

To align with these trends, the company has reduced retail staff and refocused on improving logistics operations to service ecommerce retailers.


Consumer health sales in Japan were up 19% in Q3 FY2021 on pcp to $674,000 (Q3 FY2020: $565K) and down by 17% for the FY2021 financial year to date on pcp to $2.6 million (FY2020: $3.2 million).

This was consistent with expectations as the QVC show schedule was amended to focus on one TSV (Today’s Special Value) event instead of two.

In January Cellmid received the first order pursuant to its exclusive Chinese distribution agreement with Ourui Health Management (OHM).

This order was in line with the terms of the contract and included 84,672 units of Jo-Ju® shampoo and lotion and first delivery was completed in February with the remaining products due to be shipped out at the end of April or early May depending on the availability of vessels.

Advangen International (Australia)

As part of a strong strategic shift to ecommerce, several new appointments have been made to Cellmid's digital marketing and ecommerce team during quarter three of FY21. 

Previously outsourced capabilities such as performance marketing, social and digital activities, creative content, and web development have been brought in-house through these new appointments.

The expanded digital team is working on new ecommerce platforms for Australia and the USA, due to be launched in Q1 of FY22.

A new Japanese ecommerce site is planned to follow at a later stage in FY22.

These new platforms are expected to contribute to the company’s planned growth during FY2022 and beyond.


Several new publications have been released during quarter three by independent researchers supporting the role of midkine in cancer and inflammatory diseases.

This, in turn, provided further momentum to Cellmid’s negotiations to divest from the substantial intellectual property assets held around midkine.

The company is committed to deliver optimum value to shareholders from this program, which may include a cash payment and a share in any future development upside.

Quick facts: Cellmid Limited


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