Cellmid 2018 Annual Report
i. Consumer Health Business (Advangen Limited or Advangen)
Revenue in the Consumer Health Business has grown 26% to $5,647,930, largely as a result of increased sales in Japan and
early results from the USA market. Originally set up for the commercialisation of the over-the-counter hair growth products
based on the FGF5 inhibition technology, the Consumer Health business developed a global footprint during the reporting
period with premium retail partnerships in the USA and a distribution agreement in China in addition to existing sales in
Japan and Australia. The Group has also acquired distribution rights for a new anti-aging skincare product, Fillerina®, to
broaden its product offerings in Australia and New Zealand.
Ginza store launch and growth in Japan from television shopping channel QVC
Sales growth was recorded during the reporting period from the Group’s Jo-Ju® products through Japanese television
shopping network QVC, which has an audience of 26 million households. Additional channels contributing to the strong
Japanese sales during the reporting period included barbershops for the Lexilis® branded products and sales from the ﬁrst
concept store opened in Ginza, Tokyo, in October 2017.
USA premium retail partnerships and public relations success for evolis® Professional
The Group secured a retail partnership with luxury department store chain Neiman Marcus in August 2017. With 42 stores
across the US and an increasingly signiﬁcant and fast-growing online presence Neiman Marcus e-commerce sales of the
evolis™ Professional products commenced in September 2017. Sales exceeded expectations and Neiman Marcus will
range evolis™ Professional products in stores from September 2018 as a result. In April 2018 the Group partnered with
Bloomingdales, one of the oldest and most prestigious department stores in the USA established in 1872 and currently
owned by Macy’s, Inc. In June 2018 e-commerce sales have commenced on the Soft Surroundings platform. The US
consumer experience study, LOVE IS, into the evolis™ Professional range was completed in August 2017 with 98% of
participants reporting new hair growth, 97% reported decreased hair fall and 96% improved texture. The results have been
editorialised in major business and consumer publications including Forbes, New Beauty, eol.com, and Readers’ Digest
reaching at least 169 million readers with 424 million potential impressions.
Chinese import permits and distribution agreement represent new sales channels
An exclusive distribution agreement was signed with Chinese pharmaceutical company Beijing Fukangren Biopharma
(Fukangren) for the evolis® range of pharmacy grade over-the-counter medicines in May 2018. The agreement provides for
a period of 12 months to obtain CFDA regulatory approvals for the evolis® products. Subject to receiving the approvals,
Fukangren will be required to order minimum product quantities to maintain market exclusivity for the products in China.
The Group’s Lexilis® and Jo-Ju® products received Chinese FDA approval for import into China on 1 August 2017, and sales
commenced through a local distributor.
Australian pharmacy capabilities recognised with Fillerina® distribution rights
With a national sales team operating since September 2017 the Australian focus has been on improving ﬁnancial
performance by abandoning non-proﬁtable sales campaigns, adding new products and increasing training and
merchandising in pharmacies. The acquisition of distribution rights in April 2018 for the Fillerina® product range, the ﬁrst
non-injectable dermal ﬁllers with clinical evidence of performance, and the development of new products, are critical for
achieving proﬁtability for the Group’s Australian business.