Life sciences group OptiBiotix Health PLC (LON:OPTI) has the platforms and partners in place to bring its products to market, reckons broker Hybridan.
It has raised its value per share on the firm to 106p from a current price of around 81p.
The company is developing products which modify the human microbiome, found in the gut and on the skin, to create treatments for time-bomb problems related to obesity, like diabetes.
"Much of the more significant progress has become apparent in the current calendar year," notes analyst Derren Nathan.
The company has signed six commercial agreements since 2014 and in its the current financial year has inked deals with KSF, which owns Slimfast in the UK, and landed a second contract for its SweetBiotix formulation.
It has now also successfully completed a human study on its cholesterol supplement and carried out a manufacturing assessment.
"What’s more the company greatly strengthened its intellectual property (IP) over the period expanding its patent portfolio from five to eleven, its number of microbial strain registrations from three to eight, and its trademarks from three to seven.
"When it comes to technologies that are on the path to mass acceptance, such as the human microbiome, those companies that are successful in the early land grab for IP rights often go on to become dominant in their fields," said Nathan.
The benefits of commercial agreements so far should start to accrue in this financial year, inclduing with running costs, reckons the broker.
"...but of course the bigger prize is multiple potential product launches and revenue streams. All of this has been achieved on a very modest cash burn of circa £75k to £85k," it notes.
Expenditure may grow to £100,000 but this will be well supported by current cash balances of over £4mln.
"With the company branching out into ever more areas of health and nutrition as these grow in substance it will in due course consider the formation of separate legal entities."
Optibiotix shares added 2.2% to stand at 81.25p on the day.