- Cellmid's (CDY) recent sales event on QVC, a Japanese television shopping channel, delivered wholesale revenue of over $1 million
- While results are relatively on par with the previous two sales events, this time the company will not accrue any shipping deduction costs
- Cellmid's Jo-Ju branded hair loss products are one of the best-selling products on QVC Japan and another event is planned for next year
- Other QVC channels in the U.S., Germany and the U.K. are expected to come online in 2020
- Company shares are up 2 per cent today and are trading for 25.5 cents each
Life sciences company Cellmid (CDY) has advised the sales event on QVC, a Japanese television shopping channel, delivered wholesale revenue of $1.13 million.
The sales event took place on November 25 2019 and sales results were found to be quite levelled with the previous two events.
In June this year, wholesale revenue totalled $1.14 million and in November last year, sales were slighter less at $1.1 million.
Normally, shipping costs would be deducted from the wholesale revenue however, this is the first "Today's Special Value (TSV)" event when shipping costs will not be accrued.
This means net profit is expected to be significantly higher which is consistent with Cellmid's objective of reach operational profitability next year.
"Consistent with our growth strategy released in February this year we continue to improve our net margin on this already lucrative channel, as we work towards operational profitability of our consumer business in FY2020," CEO Maria Halasz said.
Cellmid's consumer business is focused on providing innovative solutions for "youthful ageing." In particular, it focuses on a range of FGF5 inhibitor hair growth products which are sold in Australia, Japan, China and the U.S.
Its Jo-Ju branded FGF5 hair loss product remain one of the best selling products ever on QVC Japan and the company is planning on another event for the middle of 2020.
For Cellmid, the best platform for sales is television shopping and this was confirmed recently in Australia with openshop.
The company has also seen new retailers showcasing its products in recent months.
"We have added significantly to our sales channels in recent months with Priceline, openshop, Douglas and premium retail in the U.S., all of which will drive revenue growth in coming months," Maria added.
Cellmid has reportedly been in negotiations for other television shopping opportunities. It seems QVC U.S., QVC Germany and QVC U.K. is on the cards to begin selling Cellmid's evolis Professional branded products.
Company shares are up 2 per cent today and are trading for 25.5 cents each at 3:56 pm AEDT.