OptiBiotix Health plc “USA and the Rest of the World” Stephen O’Hara, CEO

OptiBiotix Health plc (LON:OPTI), a life sciences business developing compounds to tackle obesity, high cholesterol, diabetes and skin care announces that, further to the European manufacturing and supply agreement with Sacco S.r.l., announced on 8 March 2017, the Company has entered into a new agreement to cover the USA and the Rest Of the World.

The agreement grants Sacco an exclusive licence to manufacture and supply OptiBiotix’s cholesterol and blood pressure reducing LP(LDL) (R) strain in the US and ROW, in return for 50% of the profit, with a guaranteed cost of manufacture and minimum sales price per kilogramme to secure against discounting. The agreement brings the following benefits:-

1. Access to the US, the worlds largest probiotic market, with an estimated retail value of $7.1 billion per annum

2. Extension of LP(LDL) (R) into dairy applications utilising Sacco’s network in the dairy industry to develop commercial opportunities identified by them in the global $35.5 billion probiotic dairy market

3. Economies of scale, significantly reducing the manufacturing cost of LP(LDL) (R), increasing OptiBiotix’s profitability, and opening up new application opportunities

4. Long-term security of supply with Sacco’s ability to produce at different locations from multiple facilities

5. A commitment from Sacco to support the funding of further developments of LP(LDL) (R), including marketing and human studies, to expand the commercialisation of LP(LDL) (R) into new markets

This agreement is a strategic step to access the US probiotic supplement market, and to extend the opportunities offered by LP(LDL) (R) into dairy applications, with one of the largest and internationally respected supplier of probiotic ingredients. The US is one of the largest and fastest growing probiotic markets in the world, with supplements alone accounting for $2.06 billion sales, with a projected 55% growth to $3.3 billion by 2021. Extension of LP(LDL) (R) into dairy applications widens the commercial opportunity by accessing the $35.5 billion probiotic dairy market.

Market data from ‘TRENDS, INNOVATIONS AND OPPORTUNITIES DRIVING THE GLOBAL PROBIOTICS MARKET’ (Euromonitor International June 2017).

Stephen O’Hara, CEO of OptiBiotix, commented: “This new agreement with Sacco significantly extends the scale of the commercial opportunity open to LP(LDL) (R) to new application areas and territories, and reflects growing confidence from both companies in LP(LDL) (R)’s market potential. We chose Sacco as we have been impressed by their ability to introduce LP(LDL) (R) to a global network of distributors and believe extending our partnership with them provides the best opportunity of quickly building revenues and developing LP(LDL) (R) into a global brand. In addition, the ability to supply competitively priced ingredients from a single manufacturer across world markets simplifies the supply chain and contract negotiations with corporate partners.”

Click to view all articles for the EPIC:
Or click to view the full company profile:
    Facebook
    X
    LinkedIn
    Optibiotix Health Plc

    More articles like this

    Optibiotix Health Plc

    NutraIngredients Awards shortlist announced

    NutraIngredients is pleased to announce the shortlisted finalists for the 2018 edition of the NutraIngredients Awards … with the winners announced at our exclusive awards evening in Geneva on 16th May. The shortlisted finalistsfor the 10

    Optibiotix Health Plc

    OptiBiotix Health plc Launch of Slimbiome® in Nutri-bites®

    OptiBiotix Health plc (LON:OPTI), a life sciences business developing compounds to tackle obesity, and high cholesterol, today announced the launch of its award winning SlimBiome® in Nutri-Bites® with its US partner, Cereal Ingredients (“CII”), at the 2018 Natural

    Optibiotix Health Plc

    OptiBiotix Health PLC OptiBiotix Capital Reorganisation

    OptiBiotix Health plc (LON:OPTI), a life sciences business developing compounds to tackle obesity, high cholesterol, diabetes announced on 28 November 2017 that it intended to seek a cancellation of its share premium account (the “Capital Reduction”) in

    Optibiotix Health Plc

    Optibiotix Health PLC In a Strong Position

    Optibiotix Health PLC (LON:OPTI) Chief Executive Officer Stephen O’Hara talks to tells Proactive Investors about focussing on the commercialisation of their technology across the company’s platforms.

    Optibiotix Health Plc

    Functional weight loss ingredient, SlimBiome brought to US

    OptiBiotix Health PLC (LON:OPTI), a specialist in the development of functional ingredients to modulate the human microbiome, has entered into a manufacturing and supply agreement with Cereal Ingredients. The agreement grants Cereal Ingredients a licence to

    Optibiotix Health Plc

    SlimBiome® – Supporting hunger-free weight management

    Slimbiome® is OptiBiotix’s patented combination of natural ingredients, identified and developed by leading experts in nutrition and metabolism, which supports scientifically substantiated weight loss claims. In independent tests the component ingredients have shown reductions in calorie intake

    Optibiotix Health Plc

    OptiBiotix Health PLC Proposed Directorate Changes

    OptiBiotix Health PLC (LON:OPTI), a life sciences business developing compounds to tackle obesity, high cholesterol, diabetes and skin care, today announced that subject to the completion of normal regulatory due diligence Neil Davidson CBE will be appointed as Non- Executive Chairman on 1 January 2018. Adam Reynolds, the current Non-Executive Chairman will

    Optibiotix Health Plc

    Optibiotix Health PLC on Kelloggs’ Sugar Levels Cut

    Following the announcement today from Kelloggs to cut the amount of sugar in its three top selling children’s cereals, we caught up with Stephen O’Hara, CEO of OptiBiotix Health PLC (LON:OPTI) for his thoughts:   “We are really