Health: Cellmid says Japan is going bonkers for its line of hair-loss products
Health & Biotech
Health & Biotech
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Life sciences company Cellmid (ASX:CDY) is working on a number of commercial treatments for serious ailments including heart disease and cancer.
But it also sells a range of hair-care products, including those used in the prevention of hair loss.
The company has made moves in the past to gain access to the Asian market, where research has indicated that around one in four Chinese men are going bald.
Based on its latest sales update, Cellmid has found some traction with its Jo-Ju line of products in Japan.
For the second time in the last year, the company said it cleared $1m in sales in connection with a promotion on Japanese shopping channel QVC.
Shares in the company rose this morning, and are up 47 per cent so far in July to 25c. It’s welcome news for patient Cellmid investors, with the stock declining steadily from above 45c at this same time last year.
The Jo-Ju line is owned by Advangen, a Cellmid subsidiary.
The company says its line of products help to treat hair thinning and hair loss for both women and men.
It’s not a miracle cure, but the properties in Jo-Ju can at least slow the rate of hair loss by blocking the FGF-5 proteins that cause hair follicles to fall out faster.
It looks like Japan approves: “The sales event on TV shopping channel QVC in Japan generated record sales revenue to Cellmid of $1.14m,” the company said.
Stockhead has contacted the company for comment on whether the sales were driven by hair-thinning products for women or hair-loss prevention treatments for men.
That followed similar seven-figure revenue days in Japan, and Cellmid says “preliminary analysis” indicates its on track to book record Q4 revenue of $2.45m in the three months to June.
In March this year, the company also launched an online store for its range of evolis products in Australia and the US.
Cellmid is “confident that this success can be replicated in Japan” in FY20.
CEO Maria Halasz said the company had been focused on building out its distribution partnerships after recently expanding its leadership team.