Cellmid (ASX:CDY) has announced that its wholly-owned subsidiary Advangen has entered into an exclusive agreement with Beijing Fukangren Bio-pharm to distribute its évolis anti-aging hair care products in the Peoples Republic of China.
The company said the agreement between Advangen and Fukangren has two key stages:
- a twelve-month period where, for and on behalf of Advangen, Fukangren will register the évolis lotions as hair loss products with the Chinese regulator, SFDA (State Food and Drug Administrator); and,
- an exclusive distribution agreement for the évolis® lotions and shampoos for 5 years with minimum order requirements for each year.
It added that the agreement documents the responsibility for marketing the évolis products in China falls exclusively to Fukangren, with a minimum advertising spend set as a percentage of the cost of goods required. Advangen will provide support in terms of training, product imagery and assist with branding and marketing collateral.
Beijing Fukangren, established in 2000, is a growing pharmaceutical company with over 400 staff, distributing over 300 products including medicines.
Fukangren’s CEO, Mr Jinjing Wang, said: “Given our distribution capacity and customer reach, we are excited to take a unique and effective product like évolis to market through our pharmacy channels in China”.
“This agreement is an important step towards bringing évolis to the Chinese people, and we believe Fukangren has the resources, capacity and market know-how to make évolis a success in China," said Cellmid CEO Maria Halasz. "The Chinese market is a key element of Cellmid’s growth strategy and we expect it will contribute significantly to growing our revenues in the coming years.”