TIDMOPTI
RNS Number : 0859B
OptiBiotix Health PLC
09 February 2022
Opti B i otix Health plc
( "Opti Bi o t ix" or the "Company" or the "Group")
Commercial and strategy update
OptiBi otix Health p lc (AI M : OPTI), a life sciences busi ness
d e vel o ping co m p o u n ds to tack le o besit y, high choleste
r ol, diabetes and skincare, provides a strategic and commercial
update.
The Company's strategy is to sell its products globally through
a mix of smaller, quick to market partners, and larger partners who
typically enter the market once product credibility is established.
This strategy is supported by scientific publications in peer
reviewed journals, conference presentations and industry awards
which builds industry credibility, brand presence, and provide
valuable marketing assets to support sales. The Company continues
its focus on growing sales of its first-generation functional
ingredients LP(LDL) (R), SlimBiome(R), OptiBiome(R) and
LeanBiome(TM) whilst it develops its pipeline of second-generation
products. The Company now has a solid foundation having built a
recurring revenue base from business to business (B2B) sales of its
first-generation ingredients. This has delivered profitable
independent trading divisions and a healthy balance sheet placing
the Company in a strong position for sustained growth in the years
ahead.
The next phase of the Company's strategy is to expand the
Group's capabilities by reinvesting proceeds from the recent sale
of shares held in SkinBioTherapeutics plc, which generated
approximately GBP2 million. These funds have provided growth
capital to broaden and expand the Group's sales and marketing team,
accelerate new product development, increase marketing spend and
explore direct to consumer channels in strategic markets. These
funds also allow the Company to invest in acquiring new
technologies to create a future pipeline of products. This
supplements existing plans for expanding product ranges into sports
nutrition (LeanBiome(TM)) and healthy ageing (WellBiome(R)),
extending SlimBiome(R), OptiBiome(R), and LP(LDL) (R) product lines
and territories, increasing the number of larger partners, and
growing gross profit by moving up the value chain to sell a greater
portion of finalised products than functional ingredients.
The Company expects to release a separate financial update and
forecast in the upcoming weeks. This update is intended to report
progress against that strategy:
Commercial update : The Company signed three deals with market
leading partners in December 2021, being The Hut Group ("THG"),
Apollo Hospitals and Nahdi Medical. THG launched LeanBiome(TM) in
its Impact Diet Lean product in January as part of its My Protein
range with territorial expansion across Europe, Asia, and the USA
planned throughout the year. The in-house launch of GoFigure
products with Apollo Hospitals is expected to take place in H1 and
will progressively expand to other stores as well as online. Nahdi
Medical plan to launch seven products Gofigure(R) / SlimBiome(R)
Medical products in H1. OptiBiotix products are now increasingly
becoming associated with internationally recognised retail,
pharmaceutical partners and established brands.
The Group' ambition is to secure eight to ten large national or
international partners for first-generation products and two to
three partners for each of the second-generation technologies. This
is expected to give the Company a presence in markets of strategic
interest and a level of contingency as partners change over
time.
Scientific Update: The Company has a total of 25 publications,
eight in peer reviewed journals and 17 posters/conference
abstracts, with another nine publications (three SweetBiotix, four
microbiome modulators, one Slimbiome, and one LP(LDL) (R)) in
various stages of submission. Scientific and clinical studies
promote the Company's products and when supported by patents and
trademarks are seen as key differentiating features by large
partners. Such studies help to underpin OptiBiotix's position as an
industry leader in the microbiome space and one of the few
microbiome companies to translate microbiome science into
commercial products and sales growth. The Company will be investing
more in its science during 2022 as it expands the use of its
products into new areas of health (e.g. stress, anxiety, diabetes)
and acquires or in-licenses new technology to further develop its
pipeline of opportunities and maintain its position as a leader in
the microbiome space.
The recently published study on LP(LDL) (R) is a good example of
how OptiBiotix has developed a unique probiotic for cardiovascular
health, an area outside traditional probiotic gut health and
general wellbeing areas. This study showed a large and
statistically significant reduction in LDL-C (bad) cholesterol and
Apolipoprotein B ( widely accepted as the most important causal
agent of atherosclerotic cardiovascular disease). The results of
this and other studies with LP(LDL) (R), suggest efficacy similar
to many statins and treatments more typically associated with
pharmaceuticals and a potential role in the use of probiotics like
LP(LDL) (R) in individuals who are unwilling or unable to tolerate
existing treatments. The Company believes these findings are unique
for a probiotic and now has evidence comparable to phase 1-2
pharmaceutical studies opening up further partnering or out
licensing opportunities either as an OTC product used by itself or
in combination with existing treatments (e.g. statins), or a drug
biotherapeutic in markets outside the USA.
The result of this study is being supported by animations (see
LPLDL(R) - The Probiotic That Supports Cardiovascular Health -
YouTube ), videos ( Lactobacillus plantarum LPLDL Showcases
Statistically Significant Reductions In 'Bad' Cholesterol - YouTube
) and a series of radio interviews by Dr Ranj Singh, a doctor,
television presenter, and author (see
https://www.listennotes.com/podcasts/modern-mindset/279-dr-ranj-singh-on-GIg7hz9x-6U/
. This is all part of a greater investment in sales and marketing
post Covid-19 as we look to increase final product recognition and
sales. The Company anticipates increased media coverage and
scientific publications in 2022.
Sales and Marketing: As part of the increased investment in
sales and marketing, the Company is establishing a sales
infrastructure for its B2B ingredients in the USA and investing in
growing e-commerce sales for its D2C brands in Europe and Asia. The
Company views D2C brands as a significant growth opportunity for
its products and is exploring inhouse and outhouse solutions in
different markets .
In support of this investment the Company has appointed Karl
Burkitt as Director of Marketing on a consultancy basis. Karl was
Director of Marketing at divisions of AB Foods, Kerry Foods and
Novartis Consumer Health. The Company is in discussions to appoint
a Managing Director for ProBiotix Health Limited, a direct to
consumer (D2C) business manager, a business development director
for the strategically important North American market, and a
Marketing manager. Discussions have been taking place since late
2021 and we expect to be announcing details of appointments in the
next few weeks. This complements the recent addition of a
scientific and technical support specialist, Christopher
Stephenson, and the appointment of Paul Cannings as Head of
Operations and Quality in January 2022.
Steven Riley, OptiBiotix's Director of Marketing and Consumer
Sales, will leave the Company at the end of February. Steven has
been a valuable member of the team and the board would like to
express their thanks for all his work in building OptiBiotix's
brands and developing the Consumer Health side of the business.
New Product Development: The Company has expanded its
first-generation products to include LeanBiome(TM), a
scientifically formulated sports nutrition ingredient developed to
support athletes increase lean muscle mass and change their body
composition. LeanBiome(TM) contains a patented combination of
fibres, prebiotics and minerals aimed at supporting the microbiome
diversity of athletes on a high protein diet. This is a new
opportunity in a market where LeanBiome(TM) adds differentiation to
existing protein products and builds on the growing scientific
evidence of an anecdotal link between the microbiome and athletic
performance ( Do microbes affect athletic performance? (nature.com)
.
The Company has reformulated 'WellBiome(R)' with new ingredients
allowing new health claims. WellBiome(R) will form the basis of a
science backed health and wellness platform with a range of
products to improve cognitive, immune, bone, digestive, and
cardiovascular health to support 'healthy ageing'.
SweetBiotix (R): There has been good progress from the Company's
US manufacturing partner who have successfully manufactured
SweetBiotix using an industrial scale process. The partner is now
optimising yields and reducing wastage. This is a significant step
in the commercialisation of SweetBiotix(R) with the partner bearing
the costs of manufacturing scaleup of one type of SweetBiotix(R)
whilst paying annual royalty fees.
OptiBiotix is also working with a second partner, one of the
world's leading companies in taste and sweetness on jointly scaling
up and commercialising another group of SweetBiotix products. There
is a good relationship with this partner and overlapping strategic
intent to combine world leading taste and sweetness expertise with
OptiBiotix's prebiotic knowhow and valued IP portfolio in the
microbiome space. The Company believe that a deal is likely to be
achieved.
Microbiome Modulators (MM's) : The Company has developed an
innovative approach to allow it to precision engineer the
microbiome. This is one of the most exciting areas of microbiome
therapeutics as it creates the potential for targeted treatment of
a range of human diseases. The Company has demonstrated it can
selectively enhance a probiotic and enhance its health benefit
demonstrating proof of concept for using MM's as a microbiome
therapeutic. Development work was impacted by COVID reducing access
to Universities and CRO's in 2020 and early 2021. This work has now
progressed and we are pleased to report the Company has produced
microbiome modulators using a process suitable for industrial scale
up. Work is ongoing to optimise the process and test whether the
functionality has been retained before initiating full scale up and
commercialisation. This is a really exciting area of development
which if successful, the Company believes could revolutionise the
use of the microbiome therapies in healthcare. The Company will be
increasing its investment in Microbiome Modulators to accelerate
the development activities taking place.
Investor update: The Company has increased its investor activity
with the re-engagement of Proactive Investors, the continued use of
the Investor Meet Company for more substantive news, and positive
features in The Daily Mail and This is Money. This is being
paralleled with regular meets with Institutional Investors and a
Capital Markets day with a number of Institutional Investors in
February. The Company is setting up podcasts to directly respond to
investor questions and address misinformation on many BB's.
Investors can submit questions to Investor@optibiotix.com. These
will be collated and form the basis of themed podcasts throughout
the year.
2020 and 2021 have been difficult years for many companies with
an unprecedented trading environment created by COVID-19. Despite
the challenges OptiBiotix reported year on year revenue growth of
104% in 2020 , as well as 44.5% growth in H1 2021 compared to H1
2020. It also succeeded in its stated aims of attracting a number
of larger partners, achieved Health Canada and BRC accreditation,
won the award for best weight management product in the USA,
created a new subsidiary in India, and added significant commercial
expertise to its team. With more large partners, new product
platforms in new markets, extensions of product lines and
territories with existing partners, a greater focus on D2C, and
greater investment in sales and marketing 2022 should be a year of
strong growth.
Stephen O'Hara, CEO of OptiBiotix Health plc c o m mented: "This
strategic and commercial update demonstrates the strong progress
OptiBiotix has made against its stated aims. We are particularly
pleased at concluding three commercial agreements at the end of
2021 with well-known national and international partners which
create the potential for volume sales and help enhance the
reputation of OptiBiotix and its products around the world. We
believe new product launches in 2022, the extension of territories
with existing partners, new product platforms, and the commercial
realisation of our development pipeline, allow us to look forward
with confidence to further commercial progress of the Group in the
current year and beyond."
This announcement contains inside information for the purposes
of the UK Market Abuse Regulation and the Directors of the Company
are responsible for the release of this announcement.
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) Tel: 020 7213 0880
Liam Murray / Jo Turner / Ludovico Lazzaretti
Cenkos Securities plc (Broker) Tel: 020 7397 8900
Callum Davidson / Neil McDonald
Michael Johnson / Russell Kerr (Sales)
Walbrook PR Ltd Mob: 07876 741 001
Anna Dunphy
Caution regarding forward looking statements
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to be, forward looking statements. Forward looking statements are
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"could", "should" "envisage", "estimate", "intend", "may", "plan",
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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.
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END
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