Shares in life sciences firm OptiBiotix Health (LON:OPTI) gained ground as the firm struck a development deal with Italian group Centro Sperimentale Del Latte (CSL), which provides funding and further advances the AIM firm's technology platform.
OptiBiotix is developing compounds which modify the human microbiome, which can be used as food ingredients and supplements to prevent and manage conditions like obesity and diabetes.
However, today's agreement involves synthesising and purifying novel carbohydrates from microbial strains, which could then be used in different industry sectors.
CSL manufactures and distributes probiotics, starter cultures, moulds and yeasts for various sectors, including the pharmaceutical, dairy, food and agricultural sectors.
Stephen O'Hara, OptiBiotix chief executive, said: "This development agreement reflects the progress we have made with our OptiBiotic technology platform.
"Increasing the number of microbial species is an exciting extension of our existing programme which broadens the range of product and partner opportunities.
"We are particularly pleased that CSL has recognised the opportunity presented by this work and has included its own strains in the development programme".
Talking to Proactive, O'Hara added the deal effectively meant industry was saying it could apply some of the group's technical developments to its own areas, for example dairy.
Today's development programme involves increasing the growth rate of microbes, which can be used across different industry sectors such as brewing and dairy, which in turn can make them more efficient, he explained.
The company boss also noted that within its Optbiotic platform, there were three separate development programmes, of which this was just one.
The others are the use of novel oligosaccharides to modulate the human microbiome and produce a health benefit, like weight reduction and diabetes, and the use of novel oligosaccharides as sweet healthy sugars.
Shares added 3.87% to 80.5p.