Australian hair loss biotech firm, Cellmid, have surprised the markets with an ambitious cash raise. We look closer.
Cellmid
We have been following the fortunes of this small Australian biotech firm for a few years now… they have been in existence since 2004. They call themselves a life sciences accelerator, one of these new fangled businesses hoping to disrupt current medical treatments by bringing 21st century to bear. Like several other biotechs Cellmid chose to target hair loss, given the ubiquitous nature of the problem, along with the paucity of serious options already on the market, it seems a sensible strategy.
Evolis
Cellmid’s offering for hair loss is a “scientifically proven” tonic, applied to the scalp a couple of times a day. It was, they tell us, 12 years in development and in independent clinical trials “74% of the study participants have had increased hair growth and reduced hair loss.”
Looking at the clinical trial results on their site would suggest that, while their claims are absolutely verifiable, the improvement might be disappointing to anyone hoping for anything like a return to their hairy former self.
A Success Story
In late 2016 Cellmid got a foothold in the American market. They rapidly moved on to establish distribution elsewhere too and are today in possession of permission to launch in China.
Encouraged by the traction they have already achieved has seen Cellmid launch a share sale aimed at raising $9M, with an additional $1M being offered to existing shareholders. It remains to be seen how much appetite the markets have for the shares but they have shown an encouraging positive blip in the current value since the announcement The cash, they say, is to be used to drive marketing, primarily into the American market.
HIS Hair Clinic
As pleased as we are to see a new hair loss product enter the market, hopefully it can be shown to match or better the performance of the existing FDA approved treatments which both come with drawbacks, especially if you are a woman. Cellmid have other drugs in development, for cancer and kidney disease, that make us cheer them on in their efforts. We do hope that continuing to develop the existing Evolis product remains a priority.
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