Optibiotix Health Plc (LON:OPTI) this morning announced a new development agreement with Centro Sperimentale del Latte to synthesise and purify novel oligosaccharides from microbial strains. DirectorsTalk caught up with Stephen OHara the CEO at OptiBiotix Health plc to help understand the significance of this deal for OptiBiotix:
Q1. Stephen, it seems Optibiotix has developed platforms that provide multiple product and partnering opportunities and it’s not just about developing products that reduce weight loss, can you elaborate a little on that for me?
A1. That’s exactly right, within each platform there are multiple development programmes. For example, the OptiBiotic platform creates novel oligosaccharides and has three separate development programmes which are exploring different product opportunities:-
a. The use of novel oligosaccharides to modulate the human microbiome and produce a health benefit (e.g. weight reduction, diabetes)
b. The use of novel oligosaccharides as sweet healthy sugars
c. The use of novel oligosaccharides to increase the growth rate of specific microbial species.
Q2. So does this mean you have three separate development programs each with their own costs?
A2. While we have three separate programs, they run concurrently exploiting synergies to lower costs. The recent RNS with CSL exploits progress in the use of novel oligosaccharides to increase the growth rate of specific microbial species as the sugars can we produce can be used to increase the benefits from existing products in the dairy, beverage, food, and nutraceuticals industry. CSL is just one example, but there is a potential for multiple product and partner opportunities in the different industries.
Q3. Why have three separate programs?
A3. Having 3 separate programs within the same technology platform multiplies the number of product and partnering opportunities for marginal additional costs. This creates a portfolio of opportunities which diversifies development and investor risk and the potential for multiple deals across each platform. This means that even if one programme has a problem we have built in contingency. The complexity of multiple platforms and development programs creating numerous product and partnering opportunities can sometimes be overlooked by investors as they often focus on the attractiveness of individual market opportunities (e.g. sweet healthy sugars). Whilst our approach has complexity it is designed to mitigate risk, exploit the many opportunities offered by advances in our understanding of the microbiome, and build a valuable and sustainable business for shareholders
