Ann: Trading Halt , page-32

On Evolis & Advangen there are some new facts revealed in the RM Report on actual Evolis sales.

"Company recently announced that since the commencement of cash receipts of its évolis® hair growth products in September 2012 the Company has receipts of $286 (with $187K in the last quarter). This relates to orders for approximately 400 stores, and implies a rate of 12
bottles per store per quarter which is well above our previous estimate of 6 bottles per store per year (note that we estimated 1100 stores in FY2013). Our new estimate assumes 24 bottles per store per year and 700 stores. We estimate A$672K in receipts in FY2013. "

Including Advangen branded products total sales projection this year is $732,500. 2013 profit projection is $471,725 which is very similar to some back of the envelope calcs I did last year.

Building on this performance locally and replicating it in North America and Europe and the figures do indeed become very large.

For long term investors, this represents a money flow that does not have to be raised for the conduct of clinical trials .... noting as a caution that OTC revenues must me spent on developing that side of the business for the first few years. Thereafter, a proportion can be allocated to midkine related pipelines.


Cheers