logo-loader
viewOptiBiotix Health PLC

OptiBiotix to bring cholesterol reduction product to India with new agreement

The agreement was signed with Akums Drugs and Pharmaceuticals Ltd, a leading contract manufacturer of food and drug supplements in India

India flag thumbs up
Akums will manufacture and supply products containing OptiBiotix’s LPLDL strain

OptiBiotix Health PLC (LON:OPTI) has signed a five-year exclusive manufacturing and supply agreement for its cholesterol and blood pressure reducing strain in India.

The AIM-listed company, which develops a range of compounds to tackle obesity, high cholesterol, diabetes and skin care, said the agreement was with Akums Drugs and Pharmaceuticals Ltd, a leading contract manufacturer in India.

READ: OptiBiotix to present new products and research data at leading industry trade show next week

Under the terms of the agreement, Akums will manufacture and supply products containing OptiBiotix’s LPLDL strain throughout India to maximise financial return for both parties.

In return for exclusivity, the group said Akums would provide undisclosed and in-kind contributions and explore opportunities to utilise LPLDL with OptiBiotix therapeutics in India, including any required authority registrations.

Akums will also contribute to any required human studies for product marketing purposes or by the Food Safety Standards Authority of India (FSSAI) as part of product registration into food.

Optibiotix added that the agreement does not have any minimum sales orders and that it would update the market on sales in due course.

Akums is the largest contract manufacturing organisation in India, supplying more than 12% of all food and drug supplements consumed in the country, and has manufacturing partnerships with over 600 companies including Abbott (NYSE:ABT), Novartis, P&G (NYSE:PG), Sanofi and Sandoz, in the pharmaceutical and food supplement space.

Stephen O’Hara, OptiBiotix chief executive, said in a statement: "We are excited to announce this agreement with Akums which expands manufacturing and sales of LPLDL® into Asia. We chose Akums as they are the largest contract manufacturing company in India for both food supplements and pharmaceuticals and have extensive experience in manufacturing products for some of the biggest food and pharmaceutical companies in the world.

He added: "This agreement is a strategic step to add manufacturing to the supply chain in the Asian probiotic supplement and pharmaceutical market and extends the commercial reach of OptiBiotix's LPLDL® strain into Southern Asia. This allows OptiBiotix to offer multiple product solutions to consumer health and pharmaceutical companies within the region.

"This agreement is another step in a strategy designed to build multiple revenue streams from ingredient sales, white label and own label branded consumer and pharmaceutical products, across multiple channels, with leading industry partners from around the world."

In a note to clients, analysts at City broker finnCap said the agreement was “further evidence of the foundations that OptiBiotix is building for its LP-LDL probiotic strain.”

They added: “This represents the ninth agreement for LP-LDL and continues to demonstrate the company’s ability to attract high calibre, global partners, eager to utilise the potential cardiovascular benefits inherent within LP-LDL.”

In late-morning trading, OptiBiotix shares were steady around 73.5p.

-- Adds broker comment and share price --

Quick facts: OptiBiotix Health PLC

Price: 54 GBX

AIM:OPTI
Market: AIM
Market Cap: £46.14 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of OptiBiotix Health PLC named herein, including the promotion by the Company of OptiBiotix Health PLC in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Optibiotix is a very clever business model says chairman

Optibiotix PLC (LON:OPTI) is a very clever business model says chairman Neil Davidson, who just bought a sizeable chunk of additional shares in the microbiome-based additives business. Recent licensing agreements will turn into revenue streams later this year and the business will go from...

on 20/7/18

3 min read