Published on: | by Megan Graham
Cellmid Limited (ASX:CDY) launched its Evolis® range of professional anti-aging hair care products in Australia in June this year. Today, the company reported that since launch its product range has clocked up an impressive $1,022,913 in sales for Q1 FY2017.
The company has exceeded its aim to reach a million dollars in sales, exceeding the limit comfortably by $22,000 – an excellent start to the 2017 financial year.
The Evolis® range of hair care products is sold through the company’s wholly owned subsidiary Advangen Limited, which sell a distinctive FGF5 inhibitor product for hair loss.
The reason for these strong results could be Cellmid’s new regional advertising program, as website sales grow and the company see social and digital marketing campaigns deliver returns.
Overall, sales were up by 30 per cent compared with the same period in FY2016. And that’s before the products hit the US market – which is next on the list, with commencement of US sales expected to occur in Q2 FY2017.
Cellmid is a biotechnology company which operates across life sciences and also develops and markets innovative and novel therapies, as well as diagnostic tests, for fibrotic diseases, cancer ischemic diseases of the heart and for hair loss.
The company generates millions of dollars of revenue through its hair loss business, Advangen, backed by a strong foundation of intellectual property relating to FGF5.
These products were already available in Japan before their recent launch in Australia. They’re designed not just to prevent hair loss and increase hair growth, but also maximise scalp health and hair condition.
Between FY2014, when Cellmid acquired Advangen Inc, and FY2016, sales increased by 171 per cent. 2016 was the first financial year Advangen were able to claim as profitable. Along the way the company has seen growth not just in revenue, but in profitability, with normalised income cover growing from 37 to 57 per cent in the same timeframe.
This level of growth is not guaranteed to continue and investors should seek professional financial advice if considering CDY for their portfolio.
The push for sales shows no sign of slowing, as CDY eagerly look to grow the business, and increase profits, by developing their product footprint globally.