TIDMOPTI
RNS Number : 1047N
OptiBiotix Health PLC
18 May 2020
OptiBiotix Health plc
("OptiBiotix" or the "Company" or "the Group")
Trading and commercial update
OptiBiotix Health plc, a life sciences busi ness d eveloping
compou n ds to tackle obesity, cardiovascular disease and diabetes,
provides the following unaudited preliminary revenue figures for
the first three months of the financial year and a commercial
update.
Financial update
The Company announced that it had changed its financial year end
from 30 November to 31 December (RNS: 23 March 2020). This update
reports on the first three months of this financial year to the
last full week in March 2020 (ending 3 April 2020). These figures
are unaudited and based on invoiced sales from weekly divisional
sales reports. They are provided to give investors an insight into
the commercial progress of the Company in the current financial
year and may differ from final audited results.
Total invoiced sales of LPLDL(R) and SlimBiome(R) as ingredient
or final product were GBP407,844 representing a 928% increase for
the same period last year (GBP39,645). This does not include
approximately GBP60,000 worth of LPLDL(R) which was invoiced and
part paid in 2019 which under IFRS 15, a new international
reporting standard, may have to be accounted for in this year's
results as delivery did not take place until 2020.
The Company also received proceeds of GBP162,500 of investment
income in this period from the disposal of shares in
SkinBioTherapeutics plc which is not included in these figures.
There is little contribution in this period from license or
royalty payments which historically tend to be received in the
second half of the year.
We are pleased that these preliminary revenue figures show that
divisions are making progress against their aim of being profitable
this year with the Functional Fibres division led by Dr Fred Narbel
reporting a profit during this period. Each division now reports
weekly invoiced sales and a sales prospect pipeline which provides
a real time assessment of commercial progress. Progress is variable
across each division and we will be working with all divisions to
support them in the aim of each division reaching profitability
this year.
Investors are cautioned that at this stage of a company's
development, both costs and income can vary widely month to month
and the Company is not yet at a stage where it believes quarterly
or half yearly income figures can be extrapolated to full year
results.
Commercial update
OptiBiotix has signed nine commercial agreements in this period,
with a further four deals in the subsequent months, making a total
of 13 agreements for the year to date. These include nine for
SlimBiome(R) and four for LPLDL(R). These agreements aim to extend
the Company's geographic reach into 119 countries. The Company now
has 40 of its 62 deals delivering revenues with 70% of deals
expected to deliver revenues in the first year of agreement,
compared to 35% in 2019, and 33% in 2018.
The large number of agreements signed with multiple partners,
across multiple application areas and geographies, is designed to
maximise the income potential of each product, whilst limiting the
risk related to any individual deal, product, or geography. The
strategic aim is to grow the awareness of our brands around the
world. Growing brand awareness increases commercial interest in our
product and changes the nature of partner discussions as the
technology and product benefits are established. This is leading to
shorter partner discussions, interest from larger partners (as
shown by deals with Agropur, Optipharm, Holland & Barrett) and
a greater percentage of deals expected to deliver revenues in the
first year of signing an agreement. The strategy is supported by
presentations and publications at international conferences and our
products being nominated for and winning industry awards. This has
led to OptiBiotix being recognised as a key player in the global
microbiome market in a number of industry reports:
https://www.openpr.com/news/2004286/what-s-driving-the-human-microbiome-market-size-key-players;
and
https://heraldwriteup.com/human-microbiome-market-size-status-and-global-outlook-2020-2024-optibiotix-health-plc-metabiomics-osel-inc-puretech-health-4d-pharma-synlogic-inc/
As we move through 2020, we will continue to build commercial
momentum and extend our reach into new application areas (e.g.
hypertension, vascular health) and extend the use of LPLDL(R) and
SlimBiome(R) into more products. We were particularly pleased to
see LPLDL(R) introduced into dairy with Granja Pocha (RNS: 12
February 2020) and to discover one of our partners, Bened
Biomedical, using LPLDL(R) in an anti-aging product
https://vogue-beauty.com.tw/%e7%94%a2%e5%93%81%e4%bb%8b%e7%b4%b9/.
The launch of SlimBiome(R) into everyday foods like muesli and
porridge and the development of healthy snacks like our fruit and
fibre gummies under the SnackSmart brand is another exciting
innovation. This is the first of a new healthy snacking range which
taps into a global trend for healthy snacking, a market expected to
reach $32.8 billion by 2025 (Grand View research, 2019).
We will continue to enter new territories, develop new
application opportunities, and importantly support existing
partners like Agropur, AlfaSigma, Akums, and more recent partners
like Maxum and Pierce Asia in the commercialisation of products in
their home territories. We believe this strategy will continue to
generate industry interest, create a pipeline of new opportunities
across all our platforms, build revenues, and support our aim of
divisions reaching profitability in 2020.
Stephen O'Hara, CEO of OptiBiotix, commented: "The first three
months of this year has seen strong commercial progress with
OptiBiotix extending its geographic reach and brand presence into
119 countries. With more agreements generating revenues, and a
greater number of deals generating income in the first year of
agreement, we have seen a large increase in revenues (928%) when
compared to the same period last year, albeit against a low base.
We anticipate further revenue growth in 2020 as existing deals
contribute to full year revenues, we extend the application of our
products into new areas, and we continue to execute deals with new
partners. We believe interest in the microbiome will continue to
grow and the market opportunity increase and look forward to
building a sustainable and profitable business ."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information, please contact:
OptiBiotix Health plc www.optibiotix.com
Stephen O'Hara, Chief Executive Contact via Walbrook
below
Cairn Financial Advisers LLP (NOMAD)
Liam Murray / Jo Turner / Ludovico Lazzaretti Tel: 020 7213 0880
finnCap (Broker)
Geoff Nash / Kate Bannatyne (Corporate Finance)
Camille Gochez (Corporate Broking) Tel: 020 7220 0500
goetzpartners securities Limited Tel: 020 3859 7725
Ulrich Kinzel
Walbrook PR Ltd
Anna Dunphy Mob: 07876 741 001
About OptiBiotix - www.optibiotix.com
OptiBiotix Health plc (AIM: OPTI), which was formed in March
2012, brings science to the development of compounds which modify
the human microbiome - the collective genome of the microbes in the
body - in order to prevent and manage human disease and promote
wellness.
OptiBiotix has an extensive R&D program working with leading
academics in the development of microbial strains, compounds, and
formulations which are used as active ingredients and supplements.
More than twenty international food and healthcare supplement
companies have signed agreements with OptiBiotix to incorporate
their human microbiome modulators into a wide range of food
products and drinks.
OptiBiotix is also developing its own range of consumer
supplements and health products. The Company's current areas of
focus include obesity, cardiovascular health, and diabetes.
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identi ed by their use of terms and phrases such as "believe",
"could", "should" "envisage", "estimate", "intend", "may", "plan",
"potentially", "expect", "will" or the negative of those,
variations or comparable expressions, including references to
assumptions. These forward looking statements are not based on
historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of
operations, performance, future capital and other expenditures
(including the amount, nature and sources of funding thereof),
competitive advantages, business prospects and opportunities. Such
forward looking statements re ect the Directors' current beliefs
and assumptions and are based on information currently available to
the Directors.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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