Cellmid 2017 Annual Report
In 2001 the Chairman of
Estee Lauder coined the
term Lipstick Index. He
observed that despite
the economic woes of
the tech market collapse
lipstick sales went up.
Similarly, during the 2009 financial crises nail polish sales
went through the roof (Euromonitor). As we are entering
uncertain times again, anti-aging hair care sales are showing
double digit growth, especially in emerging markets. The
cosmetics industry, including hair care, seems to be immune
to negative economic indicators.
So, it is indeed with pleasure that I report to you on this
2017 financial year, when Cellmid outperformed even the
fast-growing anti-aging hair care market. For the third year
in a row our consumer health subsidiary, Advangen Limited
(Advangen), experienced significant revenue increase from
products that are leading the market in functional hair care.
But this is not all the good news for Cellmid. Underlining the
value of our intellectual property assets, midkine received
unprecedented scientific endorsement with a publication in
Nature as we closed the 2017 financial year. A breakthrough
for midkine; an important but unknown entity in mainstream
science a few years ago. It is also great news for Lyramid and
Kinera, Cellmid’s wholly owned midkine subsidiaries as they
are likely to get better reception from potential partners as
a result.
The 2017 financial year has been an important one for
Cellmid. Consumer product revenue increased by 50%
across the regions to reach a new record of $4,453,208.
For the second year in row our Japanese subsidiary,
Advangen Inc., was profitable, while Australian consumer
health revenue increased by 81% to $1,468,303 (FY2016:
Japanese sales increased by 39% to $2,984,909 (FY2016:
$2,150,371). An excellent result, especially as unfavourable
currency exchange rates affected reported sales during the
period. The Australian dollar (AUD) appreciated from 75
Japanese Yen (JPY) to 88 JPY between July 2016 and June
2017. As we generate revenue and incur costs in JPY, these
movements have no real effect on our performance, only
lower reported sales.
Chinese import permit renewal for the Jo-Ju® and Lexilis®
branded products has taken almost the entire reporting
period, which has affected sales from Japan to China.
In January 2014 Advangen entered into a distribution
agreement for its Japanese Lexilis® brand with Beijing
Huana Likang Biotechnology Co Limited. After modest
sales in 2015 orders started to increase in early 2016. At
the same time import permits for Jo-Ju® and Lexilis® had