Cellmid 2018 Annual Report
In May 2018 our Company entered into an exclusive
agreement with Beijing Fukangren Bio-pharm Tech. Co., Ltd
(Fukangren) to distribute the évolis® range in the Peoples
Republic of China. On behalf of Cellmid, Fukangren will
register the évolis® lotions as hair loss products with the
Chinese regulator and will have exclusive rights to sell these
products for five years.
Fukangren has commenced planning for the marketing of
the Australian manufactured evolis® pharmacy products with
potentially 25,000 distribution points (pharmacies and clinics)
throughout mainland China. It is expected that product
registration will take around 12 months.
The terms of the agreement were entered into following
extensive market research regarding product demand, fit
and pricing against comparable products within the Chinese
market. The “first in class, best in class” FGF5 inhibitor
technology of évolis® with its strong scientific backing
provides the products with a unique marketing proposition
and it is a significant competitive edge. Adding further
differentiation in the Chinese market is the highly desirable
“Australian made” and “Japanese made” status of the
évolis® products, as well as the formulation based on natural
active ingredients. The Chinese market is a key element of
Cellmid’s growth strategy and we expect it will contribute
significantly to growing our revenues in the coming years.
Japan remains a key market for Cellmid, and still represents
the largest source of revenue for the company with sales of
$4.2 million in FY2018, up 41% (FY2017:$2.98 million). As in
previous years, omnichannel retail group QVC continued to
perform well delivering a significant portion of the Japanese
During the year, Cellmid opened its first Advangen Hair
Biology concept store in Ginza, the premium shopping
district in Tokyo. Initially stocked with the Japanese products,
especially Jo-Ju®, the store is also designed to leverage the
brand awareness built through Cellmid’s QVC presence.
The évolis® pharmacy and évolis® Professional anti-aging
haircare ranges will be sold in Japan from September
2018 in pharmacies and from October 2018 in premium
salons, respectively. This is the first time that the Australian
manufactured products will be exported to Japan and it follows
a period of extensive product testing on Japanese customers
assessing both beauty and therapeutic applications.