Cellmid Limited’s (ASX: CDY) wholly owned consumer health subsidiary, Advangen International Pty Ltd, has signed a Supply and Collaboration Agreement (Agreement) with Pump Haircare Pty Ltd for the supply of Cellmid’s FGF5 inhibitor hair growth products under the PUMP brand and to collaborate with Pump on new products.
Pursuant to the Agreement Advangen will manufacture and supply PUMP branded hair lotions utilising its proprietary FGF5 inhibitor hair loss prevention and hair growth technology. Pump will cover all marketing activities and will sell the hair lotions through its omnichannel distribution model.
The two companies will also collaborate on new products; Cellmid will contribute its scientific expertise in developing anti-aging technologies and products and Pump will market these under its own brand.
The anti-aging hair care market is set to grow at 5.05% annually until 2028 with growth predicted in both the developed and emerging countries. The market for hair loss products, a subset of anti-aging hair care, is expected to grow at around 6% annually until 2025, largely driven by the wider adoption of topical hair loss treatments, increased awareness of natural ingredients and the trend to use skin care technologies on hair (skinification of hair).
CEO, Maria Halasz, said Cellmid is ideally placed to take advantage of this growth trend with its patented hair loss and anti-aging hair care technologies, including its own évolis branded FGF5 inhibitor products.
In addition to its FGF5 inhibitors Cellmid has already developed a number of novel, undisclosed, approaches to hair loss and anti-aging hair care using natural botanical extracts. Some of these technologies are expected to form part of the new product development collaboration between Advangen and Pump.
Advangen has been negotiating supply and collaboration partnerships as part of the Company’s broader growth strategy. The Agreement with Pump is the first of its kind with another hair care brand and it is expected to increase recognition and customer base for the technology in the fast-growing anti-aging hair care market.
Ms Halasz said that further, it is expected to underpin Cellmid’s global leadership position in the development of novel hair loss prevention, hair growth and anti-aging hair care technologies.
Backed by private equity firm Anacacia Capital, Pump Haircare Pty Ltd is a fast-growing hair care brand selling Australian designed salon quality hair products direct from its website and via more than 300 hair salons worldwide.