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OptiBiotix inks US manufacturing and supply deal for its SlimBiome appetite suppressant

Cereal Ingredients Inc will incorporate SlimBiome into their range of cereal and protein-based particulates which are used in food products such as cakes, cookies and crackers
marble cake
It is estimated that the healthy food ingredients market will be worth more than US$100bn by 2022

Life sciences group OptiBiotix Health PLC (LON:OPTI) has signed a manufacturing and supply agreement with US-based speciality ingredients manufacturer Cereal Ingredients Inc (CII).

The deal grants CII a licence to manufacture and supply Opti’s SlimBiome appetite suppressant in its range of cereal and protein-based particulates in the USA.

WATCH: Optibiotix Health eyes up future projects

In return, AIM-quoted OptiBiotix will get a 50% cut of the profits, with an agreed cost of manufacture and minimum price already in place.

By partnering with CII, Opti said SlimBiome would now find its way into food products such as cookies, cakes, crackers and cereal bars, as well as cereals.

Under the terms of the agreement, CII will “use their best endeavours” to promote SlimBiome across the USA and bring it to the attention of as many buyers as possible.

READ: Optibiotix Health's Slimbiome wins award at major food event

Opti called Tuesday’s tie-up a “strategic step” in its bid to access the global healthy ingredients markets, which is estimated will be worth US$101bn by 2022.

“We chose Cereal Ingredients due to their industry reputation and world leading expertise in incorporating functional ingredients like SlimBiome into extruded cereal and protein based particulates bringing added value and differentiation to the cereal, snacks and sports nutrition markets,” said Opti chief executive Stephen O’Hara.

READ: Coffee that loses you weight among products being developed by Optibiotix

“We were particularly impressed by the investment in development work, marketing and customer engagement carried out by CII during negotiations which have given both companies a high level of confidence in the scale of the opportunity open to us.

“We believe working with CII, and similar partners around the world, provides the best opportunity of fully exploiting the functional benefits of SlimBiome to improve the health of customers around the world.”

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