Sign up Australia
Proactive Investors - Run By Investors For Investors

OptiBiotix: Kellogg’s move highlights the need for healthy alternative to sugar. Does one of AIM’s innovators have the answer?

The company is a pioneer in the human microbiome, which is essentially the bacteria that inhabits the gut and skin
Frosties Box
As Tony would say: Frosties are Grrreat. They might be even better if they used natural, healthy sweeteners

Kellogg's said it is to cut the amount of sugar in its three top-sellers ­- Coco Pops, Rice Krispies and Rice Krispies Multi-Grain Shapes - by 20-40%. It’s also told the world last week will also stop selling Ricicles and end on-pack promotions aimed at children on Frosties.

The move comes amid pressure on food firms to cut sugar levels to combat obesity, which will be music to the ears of management of one of AIM’s most innovative companies: OptiBiotix Health plc (LON:OPTI).

It is developing natural sweet prebiotics that can be used to replace sugar in food and drinks.  These may be classified as dietary fibres, which from an industry and consumer perspective, creates the prospect of substituting high-calorie sugars with sweet, healthy fibres.

Growing interest in natural sweeteners

Chief executive Stephen O’Hara told Proactive: “With growing consumer interest in healthy lifestyles public interest and political concerns over traditional sugars and artificial sweeteners OptiBiotix is leading research in an area of growing industry interest.”

The company is a pioneer in the human microbiome, which is essentially the bacteria that inhabits the gut and skin.

It has found, for instance, small changes to the gut flora can affect the way the human body processes food.

With this in mind, it is developing compounds to tackle obesity, high cholesterol and diabetes.

SkinBioTherapeutics spun off 

After spinning off its SkinBio business as a separately listed entity earlier this year, the group is now focused on three development areas.

They are OptiScreen, which is developing gut bacteria to help in lowering cholesterol; OptiBiotics which is developing SweetBiotix, its natural sweet fibre to help with diabetes control; and Slimbiome, its weight management product.

The current year has been one of significant commercial progress, including product launches and sales agreements.

In November it inked a deal with an offshoot of Premier Foods that makes Birds Custard.

Knighton Foods will improve the formulation of Opti’s SlimBiome weight loss product so it tastes better and dissolves more easily. This will tap the product into the firm’s network of customers, which includes the major supermarket chains.

Tata too

Opti also has an alliance with Tata Chemicals to develop weight management products containing its SlimBiome additive for the Indian market.

LPLDL is another of its innovations that is gaining market traction.

OptiBiotix struck a profit-sharing deal with Italian firm Sacco to manufacture and supply cholesterol-reducing compound and the first sales of the product were made to HLH BioPharma Vertriebs·   

At the same time it has a non-exclusive agreement with Nutrilinea for the production and commercialisation of products containing the LPLDL in Europe.

WATCH: OptiBiotix pair point to massive marketing opportunities 

Having created value from the SkinBio demerger recently, CEO O’Hara recently told Proactive Investors that his target is to build each of the three divisions into separate legal entities and possibly list each separately on London’s AIM market.

With the market for its innovations expanding by the day, this looks like a very smart idea. Or as Tony the Tiger, the smiling cartoon on the front of every Frosties box might say, ‘it’s Grrrrreat’. 

View full OPTI profile View Profile

OptiBiotix Health plc Timeline

Related Articles

Workers at CERN
August 02 2018
Private banks and healthcare groups took part in the share placing
July 31 2018
Life science generally is developing at an incredible speed, says Joe Anderson
picture of addict
November 16 2017
To build the UK's first £1bn, self-sustainable biotech is the aim for chief executive Clive Dix

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use