Cellmid : Alopecia Patent allowed in Europe

ASX ANNOUNCEMENT

CELLMID ALOPECIA PATENT ALLOWED IN EUROPE

•European Patent Office issued intention to grant in relation to patent protecting the technology included in the évolis® formulations

•Promising sign for the successful grant in other countries such as the US, Japan and China

•Strengthening ongoing negotiations with potential retail and distribution partners in Europe and other jurisdictions

•Increasing commercial value of the évolis® brand beyond sales

SYDNEY, Tuesday, 2 April 2019: Cellmid Limited (ASX: CDY) is pleased to advise that the European Patent Office has issued a notice of intention to grant EPO Application No. 14 869 892.1 entitled "Method of treatment of Alopecia with Monoterpenoids".

The European patent provides protection in key European territories for hair therapy formulations comprising a class of small molecules called monoterpenoids, originally derived from botanical extracts.

Granting of this patent in Europe is an important step for this patent family and is a promising sign for successful grant in other countries such as US, Japan and China, where the same patent is under examination and where significant additional markets for the Company's hair care products exist.

The imminent granting of this patent comes at a key time in the expansion of the Company's distribution as outlined in the Growth Strategy released to the market in February (ASX Announcement, 21 February 2019) and will strengthen ongoing negotiations with potential retail and distribution partners in Europe and other jurisdictions.

"The upcoming granting of this patent represents a key milestone for the company's évolis® products and adds further commercial value to the brand beyond the current sales" said Cellmid CEO, Maria Halasz.

Background

The method covered by this patent involves administering a topical formulation containing a monoterpenoid to inhibit the hair growth cycle regulatory protein fibroblast growth factor 5 (FGF5). Detailed scientific studies have shown that FGF5 activity in hair follicles is associated with disruption of the hair cycle, leading to withdrawal from the growth or anagen phase and entry into the regressive catagen phase, followed by follicle rest and hair loss.

CELLMID LIMITED ACN 111 304 119 ASX I CDY

Suite 204, Level 2, 55 Clarence Street,

Sydney NSW 2000 AUSTRALIA

TELEPHONE [phone] FACSIMILE [phone]

WEBwww.cellmid.com.au

Rigorous testing of various monoterpenoid compounds by the Advangen Hair Gene Research Laboratory in Tokyo, Japan, showed that several were potent inhibitors of FGF5, enabling hair follicles to maintain growth in the anagen phase (ASX announcement, 2 March 2017).

Topical application of formulations containing key botanical extracts and FGF5- inhibiting monoterpenoids is central to Advangen's évolis® products against hair loss. The évolis® products containing monoterpenoid compounds have been shown to reduce hair loss and increase the number of actively growing follicles in a blinded, placebo controlled clinical study (published in the journal Clinical, Cosmetic, and Investigational Dermatology (2017) 10: 71-85).

The monoterpenoids-alopecia patents are held by Cellmid's wholly owned subsidiary, Advangen Limited. They protect the formulation of and distinguish the évolis® therapeutic and anti-aging hair care ranges from any other product on the market.

END

Company	Investor Relations & Media
Maria Halasz, CEO	Rebecca Wilson
Cellmid	WE Buchan
T [phone]	T + 61 417 382 391
[e-mail]	[e-mail]

Cellmid Limited (ASX: CDY)

Cellmid is an Australian life sciences company with a consumer health business and biotech assets in development. Advangen is Cellmid's wholly owned subsidiary engaged in the development and sale of first in class, best in class, clinically validated anti-aging products for hair, skin and body. Advangen has a range of FGF5 inhibitor hair growth products which are sold in Australia, Japan, USA and China. Advangen has a rich portfolio of hair growth and anti-aging hair care assets which include formulations of products on market, trademarks, patents and patent applications, proprietary assays and manufacturing processes. For further information, please see www.cellmid.com.auand www.evolisproducts.com.au.

Cellmid also has two wholly owned subsidiaries, Lyramid and Kinera, which develop innovative novel therapies and diagnostic tests for fibrotic diseases, cancer and ischemic diseases of the heart. Cellmid holds the largest and most comprehensive portfolio of intellectual property relating to the novel targets midkine (MK) globally.

Forward looking statements

This announcement may have forward-looking statements that are subject to risks and uncertainties. Such statements involve known and unknown risks that may cause the actual results, performance or achievements of Cellmid to be materially different from the statements in this announcement. Actual results could differ materially depending on factors such as the availability of resources, regulatory environment, the results of marketing and sales activities and competition.