Frostbland will take over all distribution responsibilities for the pharmacy market, including initiating sales in banner groups and independent pharmacies, merchandising, product warehousing and dispatch as well as assisting with below the line advertising.
The arrangement will allow Cellmid to maintain its focus on its midkine product development, with new products already planned in the pipeline.
The exclusive distribution agreement has minimum monthly order requirements and sales targets, and has a term of three years extendable by mutual agreement.
Frostbland has built several own brands and distributes prestige and mass brands in skincare, cosmetics, fragrance and point-of-care diagnostics to more than 3,500 pharmacies in Australasia.
Maria Halasz, chief executive officer of Cellmid, commented on the partnership: "Frostbland is one of the few full service, local distribution and marketing organisations to pharmacies with its own national sales force, branding and marketing team as well as logistics capabilities.
"Frostbland ticks all the boxes for us with its successful track record in launching premium pharmacy brands, highly skilled and dedicated national sales force and state of the art warehousing and product management facilities."
Therapeutic Goods Administration listing of the évolis® hair growth products has been a major milestone this year for Advangen International, Cellmid's subsidiary.
évolis® is the first Therapeutic Goods Administration-listed topical hair growth product in 24 years.
Uri Ferster, managing director of Frostbrand, said évolis® is based on ground-breaking technology and addresses a significant consumer need, particularly in the pharmacy market.
Terry White Chemists became the first pharmacy group selling the évolis® products in June and Cellmid has since signed up other groups.
Cellmid's original distribution target was to open 400 pharmacy doors to the product during the first 12 months, and the company is already well ahead of this target.
With a A$1.051 million cash balance at the end of the June 2012 quarter, not including the $400,000 since received in new subscriptions, revenue from the Advangen and évolis® sales, as well as a reduction in expenditure, Cellmid is sufficiently funded to proceed with its current, low cost business strategy.
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