Cellmid releases Appendix 4C and Notes to Appendix 4C

Highlights for the quarter ending 30 September 2018:

• Customer receipts for the first quarter of FY2019 at $2.01 million, up 100% from the same period in FY2018 ($1.01 million)
• Consumer health sales at $1.55 million for the quarter, up 50% compared with $1.03 million in the same period in FY2018
• Successful US retail store launch with experiential marketing events in 13 locations
• Positive preclinical results for midkine antibody (CAB102) in FSGS towards orphan drug application

SYDNEY, 15 October 2018: Cellmid Limited (ASX:CDY) (the Company) provides the following notes to its Appendix 4C Quarterly Cash Flow report for the first quarter of the 2019 financial year (Q1 FY2019).

Customer receipts from sales reached $2.01 million for Q1 FY2019, which represents a 100% increase on receipts for the same period last year (Q1 FY2018: $1.01 million). Consumer health sales for Q1 FY2019 were up 50% at $1.55 million compared with the same period in FY2018 (Q1 FY2018: $1.03 million).

Sales in all three geographies (Australia, Japan and USA) grew compared with the same period last year. The USA recorded the highest growth rate, while Japan continues to represent the largest amount in terms of sales revenue.

Cash balance at the end of the quarter was $9.26 million, up from the $1.61 million at the end of the previous quarter. Following the successful completion of the $10.03 million (ex-costs) private placement and share purchase plan in September 2018 the Company repaid $1.00 million of the $2.00 million Platinum Road R&D loan facility during the quarter. The remaining $1.00 million is expected to be repaid with interest in 2Q FY2019.

Other significant cash outflows related to inventory manufacture, which was $1.16 million compared with $179K in the same period in FY2018 to service anticipated sales growth.

For the full announcement, see here

Cellmid Limited (ASX: CDY)
Cellmid is an Australian life sciences company with lead programs in multiple disease indications. The Company, through its wholly owned subsidiaries, Lyramid, Kinera and Advangen, develops and markets innovative novel therapies and diagnostic tests for fibrotic diseases, cancer, ischemic diseases of the heart and hair loss. Cellmid holds the largest and most comprehensive portfolio of intellectual property relating to the novel targets midkine (MK) and FGF5 globally. Intellectual property pertaining to midkine is being exploited through wholly owned subsidiaries Lyramid and Kinera. Advangen, Cellmid’s consumer health business, sells its FGF5 inhibitor hair growth products in Australia and Japan, and currently expanding distribution in other territories. For further information, please see www.cellmid.com.au andwww.evolisproducts.com.au.

Advangen Limited and hair growth products
Advangen Limited is Cellmid’s wholly owned subsidiary engaged in the development and sale of anti-aging hair care products. Advangen has a range of FGF5 inhibitor hair growth products which are sold in Australia and Japan with a USA launch currently ongoing. 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.

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 evident in a disease context, and targeting midkine is not expected to harm normal healthy tissues.

Investment in life sciences companies
There are a number of inherent risks associated with the research, development and commercialisation of pharmaceutical products. Investment in companies specialising in these activities carry specific risks which are different to those associated with trading and manufacturing businesses. As such, these companies should be regarded as highly speculative. Cellmid recommends that investors seek professional advice before making an investment in its shares.

[i]Journal of Cosmetic Dermatology 2014; 13 (4): 277-287, “Anti-aging and filling efficacy of six types hyaluronic acid based dermo-cosmetic treatment”

[ii] Euromonitor 2017