Summary - Cellmid started year 2013 on a positive note with major updates on their hair loss and therapeutic programs. We are not surprised to see strong share price action as company performed extremely well: a) posting first sales for the hair loss product that exceeded our expectations, b) providing major update on the first therapeutic indication showing strong preclinical data, c) obtaining a new option to license agreement for its proprietary anti-midkine diagnostic antibodies for validation on Fujikura's latex platform, providing a strong validation of midkine’s future potential in the diagnostic space.
We update our Price Target to A$0.072 primarily based on the fact that the company is now only a few months away from receiving a milestone payment and initial royalty revenues from the commercial launch of Lung Dx (by Quest Diagnostics) and Cxbladder (by Pacific Edge Biodiagnostics). We also update our view on commercial opportunity of evolis hair loss product as first sales numbers exceeded our original estimates.
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