Chinese Distribution Agreement Signed with Beijing Based Company for Hair Loss Products
Sydney, Jan 29, 2014 AEST (ABN Newswire) - Cellmid Limited (
ASX:CDY) advises that it has signed (via its wholly owned subsidiary Advangen Inc. (Japan) a Chinese distribution agreement for its Lexilis Black(TM) and Jo-Ju(TM) brands with Beijing Huana Likang Biotechnology Co Ltd. The distribution agreement is exclusive for these brands in China subject to minimum performance requirements. The agreement is for a period of three years, however it may be automatically extended if minimum sales are met.
Huana Likang is a fast growing direct marketing company with primary channels through television shopping networks and web-based sales. Cellmid's Lexilis Black(TM) (for men) and Jo-Ju(TM) (for women) are positioned as key brands amongst products that include health supplements and selected cosmetics.
Ordinarily, companies importing healthcare and cosmetic goods to China face significant hurdles and often take several years for sales permits to be issued. Cellmid has been able to achieve rapid market access due to its acquisition of Advangen Inc. (Japan) in May 2013, which had Chinese import permits for Lexilis(TM) and Jo-Ju(TM) already in place.
There has been intense interest in Cellmid's FGF-5 inhibitor hair growth products from various market segments following the acquisition of Advangen Inc. (Japan). In selecting Beijing Huana Likang Biotechnology Cellmid has found a partner with strong growth potential and a dedicated sales force for its FGF-5 inhibitor brands. Costs associated with marketing and sales will be met solely by the distributor, however Cellmid will provide assistance by supplying its marketing information and materials and product designs to the distributor.
It is conservatively estimated that the premium Chinese hair growth market exceeds $3 billion, assuming that around 5 million people, or 0.37% of the total population, are or will be using hair growth enhancing lotions and shampoos. The Lexilis Black(TM) and Jo-Ju(TM) brands will be targeted to the large and growing middle class as premium, scientifically validated treatments. Other, Australian manufactured hair growth product brands are planned for China to expand the market reach of the Company's unique FGF-5 inhibitor technology.
Midkine (MK) Midkine is a growth factor that is highly expressed during embryonic development. Midkine modulates many important biological interactions such as cell growth, cell migration and cellular adherence. These functions are relevant to cancer, inflammation, autoimmunity, ischemia, nerve growth/repair and wound healing. Midkine is barely detectable in healthy adults and only occurs as a consequence of the pathogenesis of a number of different disorders. Midkine expression is often evident very early in disease onset, even before any apparent physical symptoms. Accordingly, midkine is an important early marker for diagnosing cancers and autoimmune diseases. Finally, midkine is only present in a disease context, and targeting midkine is not expected to harm normal healthy tissues.
FGF-5 inhibitor hair growth products In 2010 Cellmid set up a dedicated subsidiary, Advangen International Pty Ltd, for the development of midkine for hair growth. While developing this program, the Company launched a range of FGF-5 inhibitor hair growth products on the market in 2012 under license and acquired the owner of the technology, Advangen Inc. (Japan) in May 2013. Since then, Cellmid has been actively building its distribution in Australia, Japan and in other major markets.
About Cellmid Limited
Cellmid Limited (ASX:CDY) is an Australian life sciences company with a consumer health business and biotech assets. Advangen is Cellmid's wholly owned subsidiary engaged in the development and sale of first in class, best in class, clinically validated anti-aging products for hair, skin and body. Advangen has a range of FGF5 inhibitor hair growth products which are sold in Australia, Japan, USA and China. Advangen has a rich portfolio of hair growth and anti-aging hair care assets which include formulations of products on market, trademarks, patents and patent applications, proprietary assays and manufacturing processes.
The Company also holds the most comprehensive intellectual property around midkine, an important growth factor implicated in various diseases including cancer, inflammatory diseases, bone healing and autoimmune conditions. Lyramid, Cellmid's wholly owned subsidiary has been commercializing these promising drug technologies.
For further information, please see www.cellmid.com.au and www.evolisproducts.com.au
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