Cellmid Limited (ASX: CDY) is an Australian life sciences company from the Health Care sector, which develops products to treat cancer and chronic inflammatory diseases.
On 28 May 2019, the company also provided an update on the FY2020 growth strategy. In FY2020, CDY would focus on the strong management team and the board who would be executing on the strategy for entering into the new markets as well as broaden the sales channel. The company will also be looking at the extensive IP portfolio for multiple value, creating opportunities in midkine drug portfolio of the company.
The company reported a 25% growth in the sales during Q3 FY2019 from its previous corresponding quarter. The cash and cash equivalent by the end of the 31 March 2019 was $4.9 million. The company is on track to achieve another record revenue in FY2019.
Through the diversified revenue growth across the various global market, the company expects to achieve profitability of consumer business in FY2020. The e-commerce strategy of the company is delivering results in Australia and the US. The company continues its expansion into premium US retailers with évolis products, which is selling in 30 stores in the US. By the end of 2019, the company expects this number to reach 100. The company is on track to sell évolis in Japan through e-commerce channels from the mid of 2019. The company also obtained European import permits and confirmed the distribution partner with the first sales expected to be in the first half of FY2020.
The company also provided its investors with its upcoming news flow, which includes:
- Company’s distribution agreements in new territories.
- Company’s expansion of e-commerce in all key markets.
- European distribution partner sales to commence.
- The Fukangren regulatory approval, along with sales to commence.
- Chinese distribution of heritage brands to expand.
- The progress of Orphan drug application.
- Progress on Midkine partnership/funding.
Further, on 28 May 2019, CDY announced the appointment of Mr Bart Wuurman as CEO of Lyramid, effective 1 June 2019. Lyramid is one of the 100% owned subsidiaries of Cellmid. Lyramid, along with Kinera, focuses on therapies based around midkine, which is an extensively validated therapeutic and diagnostic target.
Mr Wuurman is an accomplished biotech CEO and has more than thirty years of experience in innovative drug development, biotech financing, business development as well as licensing. He also has vast experience in working with the R&D companies which are into pharmaceutical product development in several therapeutic areas such as cancer, fibrosis and cardiovascular diseases.
The appointment of Mr Wuurman is in line with the company’s strategy to unlock shareholder value by separating the consumer health and the biotech business. He will be responsible for accelerating the partnering discussions, as well as to look for opportunities to fully utilize the midkine assets.
CDY holds a market cap of A$16.72 million and approximately 83.61 million outstanding shares. The stock of the company, last traded on 28 May 2019, at a price of A$0.200.
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