TIDMOPTI
RNS Number : 3981T
OptiBiotix Health PLC
20 July 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 six months of the financial year and a commercial
update.
Financial update
This update reports on the first six months of this financial
year to 30 June 2020. These figures are unaudited and based on
invoiced sales from 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 reported
half year results.
Total invoiced sales of LP(LDL) (R) and SlimBiome(R) as
ingredient or final product were GBP741,504 representing a 398%
increase over the H1 period last year (GBP148,818). The Company is
pleased to note the year on year increase in revenue growth from
7.7% (H1: 2017-2018) to 84.7% (H1: 2018-2019) to 398% (H1:
2019-2020) as more agreements generate revenues and partners
continue to grow sales from successful product launches.
We are pleased that these preliminary figures show that each
division is making progress against the aim of becoming profitable
this year. The functional fibres division led by Dr Fred Narbel
reported a profit during this period, the ProBiotix division was
profitable in three of the six months, and the consumer health
division was profitable in one of the six months.
The Company also received GBP747,500 of investment income in
this period from the disposal of shares in SkinBioTherapeutics plc
which is not included in these figures.
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 half yearly
income figures can be extrapolated to full year results.
Commercial update
OptiBiotix has signed 15 commercial agreements in this period,
11 for SlimBiome(R), and four for LP(LDL) (R). Of particular note
are the deals with Holland and Barrett, Optipharm, and USA partners
opening up retail opportunities in the UK, Australia, parts of
Asia, the Middle East, and North America. Announcing deals
increases industry awareness of OptiBiotix's brands within the
industry and changes the nature of partner discussions as the
commercial benefits are established in more territories. Growing
brand awareness increases the value of a product, and ultimately
shareholder value, and is particularly important and valued by
large corporates. This is in line with our strategic aim of growing
the awareness of our brands around the world.
LP(LDL) (R)
Sales of LP(LDL) (R) as an ingredient or final product grew by
477% compared to the same period last year. Of particular note was
the successful launch of AlfaSigma's Ezimega 3 product and the
commercial growth of Seed Health's Daily Synbiotic. Post period,
the signing of an agreement with Actial Farmaceutica Srl for the
distribution of CholBiome(R) products was a significant achievement
and brings further credibility to the LP(LDL) (R) brand. Actial is
the developer of one of the world's best-known probiotic brands -
VSL(#) 3(R) and their products have a reputation for their strong
science and clinical studies amongst hospital clinicians, GPs and
pharmacists. LP(LDL) (R) is now building an industry brand presence
with a growing list of pharmaceutical partners who recognise the
value of a natural product with a known mechanism of action, human
studies, and a portfolio of trademarks and patents which protect
their commercial interests. In addition to growing interest from
pharmaceutical groups commercialising LP(LDL) (R) as a supplement,
it is being used in a wide range of other applications. These
include dairy (RNS: 12 February 2020), anti-aging products
(https://vogue-beauty.com.tw/%e7%94%a2%e5%93%81%e4%bb%8b%e7%b4%b9/
) and with a blood pressure, CholBiome(BP,) and vascular health
product CholBiome(VH) , to be launched with partners later this
year. This will complete a suite of cardiovascular applications of
different formulations which should meet the regulatory and market
needs of most countries around the world.
SlimBiome (R)
Sales of SlimBiome(R) as an ingredient or final product grew by
+1,309% compared to the same period last year. This was largely
driven by partners in the UK, Australia and the USA either
launching retail products or building stock levels for launch of
products. Of particular note is the extension of SlimBiome(R) into
everyday foods like muesli and porridge and the development of
healthy snacks like fruit and fibre gummies under the SnackSmart(R)
brand. The launch of WellBiome(R) at the end of the period reflects
the growing interest from partners in a science backed Health and
Wellbeing microbiome product which taps into a global trend for
Health & Wellness industry , a market estimated to be worth
US$4.2 trillion in 2019 with the digestive health segment
accounting for US$60 billion.
SweetBiotix (R)
SweetBiotix (R) are a family of products based on a concept of
creating a sweet fibre that has a low glycaemic index which
enhances the microbiome. The concept uses new science, new
manufacturing processes, and is a step change from existing
products on the market or known to be under development. This
creates a large opportunity but a challenge working with multiple
partners on application opportunities as diverse as dairy, cereals,
and hot & cold beverages. Each of these have to be assessed in
terms of flavour optimisation (as this will depend on the food
matrix), stability (which is different in a yoghurt to an acidic
carbonated beverage), dosage (which will effect cost and sweetness
levels), safety, tolerance, health benefits, and the final product
cost profile.
One SweetBiotix (R) product has undergone pilot manufacturing
scale up and OptiBiotix raised funds in April 2020 to scale up
additional SweetBiotix(R) products with partners.
Discussions with manufacturing and application partners are
taking place against a background of development and optimisation
under heads of terms or 'open innovation' arrangements. These allow
parties to share information and samples whilst protecting
OptiBiotix's IP in an area increasingly seen as of growing
strategic importance to the industry. Larger partners often want
exclusivity for the complete SweetBiotix(R) portfolio to protect
their commercial interests. An agreement with a single partner
would be simpler and quicker but could potentially limit the
opportunity and create a reliance on a single partner to
commercialise. It is in OptiBiotix's best interests to negotiate
multiple agreements to reduce this risk. Discussions are taking
place with a number of partners within a corporate process and
timescale, and are subject to strict confidentiality clauses. We
hope to close out one or more agreements within the coming months
subject to successful negotiations. Further announcements will be
made in due course if or when these discussions materialise into
binding commercial agreements.
Stephen O'Hara, CEO of OptiBiotix, commented: "The first six
months of this year has seen strong commercial progress with a 398%
increase in revenue compared to the same period last year. There is
a now a trend showing an acceleration in year on year revenue
growth as more agreements generate revenues, existing partners grow
sales, and more retail partners launch products. We anticipate
further revenue growth in 2020 as interest in the microbiome and
products for health and wellbeing grows .
"Whilst uncertainty within the global economic environment will
create challenges we believe our strategy of working with multiple
partners, across different application areas and geographies within
the healthcare sector, will limit the risk related to any
individual deal, product, or geography."
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
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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