ProBiotix Health PLC, the Aquis-listed life sciences business developing probiotics to tackle cardiovascular disease and other lifestyle conditions, has announced the commencement of employment of Steen Andersen as its chief executive officer (CEO) on 2 January 2023 and also provided an update on recent scientific and commercial activities.
The company - formerly a subsidiary of OptiBiotix Health PLC (AIM:OPTI) which was spun out in March 2022 - noted that Steen brings 30 years' experience in building businesses in the probiotics industry, having been president of Deerland Probiotics and Enzymes, president and CEO of Bifodan, president and CEO of Fluxome, and vice president of Human Health at Chr. Hansen.
ProBiotix said it believes that Steen's industry reputation, network of contacts, experience and track record of growing sales and profitability will help accelerate the growth and recognition of the company into 2023 and beyond.
WATCH: ProBiotix Health anticipating "big commercial opportunities" during 2023
In a statement, Stephen O'Hara, director of ProBiotix, commented: "The recruitment of Steen Andersen as CEO to ProBiotix brings in an established industry figure to lead the Company into its next stage of development.
"With growing sales, operational profitability, and a clear strategic focus on growing the business by commercialising ingredients and final products across more territories and more application areas with existing and new partners, we look forward to 2023 with great confidence and excitement. We thank our investors for their continued support and look forward to building a valuable and profitable business."
2022 saw continued strong growth
ProBiotix Health said that 2022 was a year of continued strong growth for the company with existing customers increasing sales, new customers in Belgium, USA, Spain, South America, Hong Kong, Israel and Germany contributing revenues for the first time, eCommerce sales doubling, and growing sales in dairy.
It said a detailed trading update will be provided in the next few months but reported growing interest in the use of LPLDL in dairy following the launch of Yo-Life with its partner Granja Pocha in Uruguay.
The launch of Yo-Life represented a significant milestone for the company as it extended the use of LPLDL into functional dairy foods with the health claim 'helps reduce cholesterol'. Following the launch of Yo-Life, the company said it has seen increased use of LPLDL in other dairy products with the launch of spreadable cream, a drinking yogurt, a Greek yoghurt starter culture in the USA, and a creamy herb cheese in Canada.
Of particular interest, it added, is the increased evaluation and use of LPLDL by large partners looking at plant-based alternatives to dairy, where LPLDL appears to improve the taste and texture of plant-based dairy alternatives in addition to cholesterol-reducing benefits. The use of LPLDL in food products such as dairy/dairy alternatives is of strategic interest as it opens up markets where volumes and sales are significantly higher than the dietary supplement industry, with potential for substantive growth.
Sees 2023 as "a year of opportunity"
ProBiotix Health said early indications for 2023 show another year of strong growth, including the potential for:
- Extension of product ranges and territories with the Company's two largest partners, AlfaSigma and Seed Health.
- The launch of CholBiome products in Brazil with Ayalla, following an 18-month registration period, with a health claim for cardiovascular health. The company believes that LPLDL will be the first probiotic strain ever to be registered in Brazil for cardiovascular health, with first-mover benefits and strong interest from the pharmaceutical industry.
- New product launches in Hong Kong, Germany and on TMAll in China. A number of these are from companies that have already placed orders with delivery in 2023.
- One or more agreements with large US partners creating the opportunity for substantive revenue growth. This will be supported by the expansion of our CholBiome range with a phytosterol-containing product with US health claims.
- Continued strong growth in eCommerce sales with anticipated revenues of £250,000 to £500,000.
The company said it continues its scientific studies to support sales and marketing efforts with scientific presentations and publications and developing the product pipeline. This can be through exploring new probiotic strains and/or extending the applications and use of LPLDL.
Current studies include human studies investigating the impact of LPLDL on sleep, stress, and anxiety, and the reduction of cholesterol in coeliac disease. Sleep aids and stress management products are the fastest growing category within healthcare, according to Goldstein Market Intelligence, 2020, and this is another step in extending the range of applications for the company's scientifically and clinically proven products into large growing markets where there is an unmet clinical need.
The company said it has had three abstracts accepted for presentation as posters and/or oral presentations at ProBiota in February 2023.
ProBiotix Health said it aims to continue to work with AQUIS and explore opportunities on other markets, including AIM, to increase liquidity in its shares.
The company said it sees 2023 as a year of opportunity and continued growth and operational profitability, with a focus on commercialising products across more territories, particularly the USA with larger partners, and increasing the proportion of final product to ingredient sales to partners and via our e-commerce platform. This will be supported by a developing product pipeline with new probiotic strains and extending the applications and use of LPLDL into new areas, all supported by strong science and human studies, it added.
ProBiotix Health concluded: "The scale of the market opportunity in probiotics is large, particularly outside the traditional gut health and health and wellbeing markets, where growth is slowing. This is increasing interest in ProBiotix and its products from larger partners looking to sustain future growth. The proven safety and efficacy of our products, the substantial scope for expansion of our range and geography, and the appointment of a proven commercial industry leader, allow us to look to 2023 with confidence and enthusiasm."