Cellmid (ASX: CDY) has signed a private label supply agreement with listed Taiwanese healthcare business, Maywufa.
The agreement is the company's first private label entry into the estimated $5 billion global hair growth and anti-ageing hair care market.
Under the agreement, Cellmid will manufacture and sell FGF5 inhibitor hair growth products to Maywufa, which will sell the products under its own brand name.
According to the company, this is its first private label contract combining an established Taiwanese brand name, as well as Maywufa’s extensive distribution channels, with Cellmid’s cutting edge FGF5 inhibitor hair growth products.
The products are "scientifically and clinically validated" to reduce hair loss and increase the number of growing hair follicles.
"They have been developed for moderate to medium level hair loss," the company said. "In a recent blinded, placebo controlled clinical study they showed a statistically significant 80.2% reduction in hair loss over 112 days (16 weeks) with twice daily use.
"Hair differentiation, or anagen/telogen ratio, improved with an increase of 44.2% in growing hair follicles during the same period as analysed by the Van Scott 'hair pluck' method.
"Hair release and recovery was quantified by PhotoGrammetrix measurements and showed an improvement by a statistically significant 143.3%."
Cellmid said that selling the FGF5 inhibitor products through private label supply agreements is one of its key expansion strategies, and that it is currently in negotiations with a number of international brand owners to further grow this business.
Maywufa owns the largest pharmacy franchise in Taiwan with more than 200 stores. Its sales network covers over 5,000 drug stores, general practitioners and hospitals.