Biotech Cellmid is going global with its anti-ageing hair product Evolis, securing distribution through major US department stores and preparing for a launch in Japan.
The Evolis products are designed to stop FG45, a biological signal that halts the hair production cycle and triggers hair to stop growing.
On Wednesday Cellmid (ASX:CDY) told investors the Evolis range would be permanently stocked in Neiman Marcus and Bloomingdale’s from 2018, after successful online sales trials with the two US retailers.
The stock was up 6 six per cent at 46c by 11.30am. It’s traded between 35c and 58c over the past year.
“Our specially trained sales staff – hair biologists – do a hair follicle test with a microscope connected to a tablet,” chief executive Maria Halasz told Stockhead.
“Customers can see their own hair follicles and are able to recommend a personalised set of products for each customer.
“Our average conversion rate is very high — over 50 per cent — and we can do an assessment within 5-10 minutes per customer,” she said.
“We are targeting the 2,500 or so premium retailers in the US in the first instance and expect around 10% of this market in the next 12-18 months,” Ms Halasz said.
The company says even if it just secures distribution through 25 US stores, this could result in more sales revenue than the entire Australian market for its products.
Cellmid also confirmed this morning it would be selling the Evolis Professional range into Japan through speciality retailers and hair salons in the country from July.
Besides its Evolis hair loss treatment, Cellmid is also working on drug treatments for use on solid tumours, as well as licensing a non injectable dermal cosmetic filler, Fillerina, which is planned for an Australian launch soon.
In the March quarter, Cellmid made $2.2 million from customers and burned $704,000. It had $3.4 million in the bank at March 31.