Cellmid 2018 Annual Report
6
CEO
REPORT
Dear Shareholder,
It is with pleasure that I
report to you on the results
of this 2018 financial year.
This has been a year of
excellent progress, with
the achievement of several
corporate and business
milestones; capped off
by the completion of a
transformative capital raise.
Cellmid reported total revenue and other income in the
2018 financial year (FY2018) of $6.83 million, a 23% uplift
from FY2017. Sales growth from Cellmid’s consumer health
division was the key driver of Cellmid’s revenue performance,
increasing 26% over the financial year. Cellmid also received
$947,000 from the Australian Tax Office under the R&D Tax
Incentive Scheme.
Net loss after tax was $3.73 million in FY2018, a 17%
improvement on the 2017 financial year (FY2017: $4.48
million loss). As Cellmid progresses past the initial phase of
its global marketing and distribution expansion, operating
costs are expected to be leveraged even more efficiently
within new products and markets, providing a pathway to
profitability.
On 31 July 2018 we announced the completion of a private
placement of shares to institutional and sophisticated
investors to the value of $9.0 million and a further $1 million
was raised from a Share Purchase Plan. Approval of the
final tranche of this capital raising during the 7 September
Extraordinary General Meeting means that the Company is
well funded to execute on its growth plans.
With a strong balance sheet, a clinically validated product
portfolio and global distribution in place, we are well
positioned to take advantage of the positive tailwind in the
anti-aging consumer market and accelerate sales growth.
Adding our midkine drug development programs, Cellmid
has an exceptional opportunity to deliver value for our
shareholders.
Anti-aging hair care is the fastest growing segment in the
hair care category, and a highly attractive market for our
company. Our business strategy over the past financial
year, to implement and expand our global marketing and
distribution strategy for our flagship évolis® product range,
has been designed to target this market in a range of
geographical regions. I am pleased to report that we have
started to see the results.
We are also well placed to continue to develop our
biotechnology portfolio of midkine assets through research
and commercial partnerships. The 5th Midkine Symposium
held in Munich in May 2018 confirmed the quality of the
science, the breadth of our intellectual property assets and
the excellence of our collaborations and partnerships in this
exciting asset portfolio.