Cellmid 2017 Annual Report

CEO

REPORT

CONTINUED

Together with revenue growth value of our midkine drug

development portfolio increased signiﬁcantly. We have

spent considerable time to assess the data generated

over the years in both the midkine (MK) antibody and

the midkine protein programs and have continued

collaboration with some of the best researchers around

the world.

Our intellectual property strategy continues to pay off and

we have reported on two new midkine patents during the

period. Therapeutic areas of interest for Lyramid, including

cancer and chronic kidney disease, represent unmet

medical needs and opportunities to make a real change in

patient outcomes.

Delivering value from this portfolio will come down to

selecting the most effective anti-MK antibody in the best

disease indication for clinical development. Most recent

developments from our research partners, including the

Nature publication on metastatic melanoma, improved our

understanding of the role of midkine, and are important

milestones in formulating a credible product development

program. Our strategy remains to leverage our MK

reagents to access research capabilities with global experts

in their therapeutic ﬁelds of interests.

Cellmid reduced its outstanding capital during the period

through the exercise or expiry of close to 300 million

options. On 28 October 2016 the Company raised $1.2

million through the exercise of 32,394,541 listed option

at 3.4 cents and 3,971,962 unlisted options at 3 cents.

Together with a placement of 99 million shares at 3 cents

each a total of $4.2 million was raised by 1 November

2016 for the further development of the midkine program

and to grow the consumer health business.

ADVANGEN LIMITED -

CONSUMER HEALTH REVENUE

INCREASED 50% TO $4.45

MILLION IN FY2017

When we ﬁrst set up Advangen we were targeting the

$4 billion global hair loss market. However, we know that

our FGF5 inhibitors deliver so much more beneﬁt than

reducing hair loss. Our most recent consumer experience

study has shown that our products not only reduce hair

loss and increase hair growth, but they improve the overall

quality and thickness of hair. This allows us to enter the

lucrative anti-aging hair care market.

It is difﬁcult to accurately assess the size of the anti-

aging hair care market. We know that it is signiﬁcant

with up to 40% of women and 50% of men experiencing

hair challenges by the time they turn 40. Just in the US,

180 million people are estimated to have various hair

challenges. Finding our way to this group can only happen

if we are focused on product leadership, authenticity of

branding and honest communication with our customers.

At the core of our brands is our leadership in hair science.

Our products inhibit FGF5, a naturally occurring protein

that has been recognised as the key regulator of the

human hair cycle. An overexpression of FGF5 causes

hair follicles to enter a phase where the hair falls out.

Advangen is the ﬁrst and still the only company in the

world with a clinically validated FGF5 inhibitor hair growth

product on the market.