OptiBiotix Health plc (LON:OPTI), the life sciences firm focused on obesity and skincare, has signed up HLH Biopharma GmbH as a customer.
HLH, which has more than 20 years of experience distributing probiotic and natural products under the brand names Lactobact and Casa Sana, has entered into a three-year agreement to produce, package and commercialise products containing OptiBiotix’s cholesterol-reducing LPLDL strain.
The agreement follows HLH’s order for 100,000 capsules, announced at the end of April.
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This agreement provides a mutual commercial commitment with ongoing revenue and reflects the growing confidence in the science behind LPLDL as a functional component and its future brand value in a wide range of consumer healthcare and pharmaceutical products, OptiBiotix claimed.
"We are pleased to announce this three year supply agreement with HLH, which demonstrates an ongoing financial commitment in building the brand from one of Europe's leading suppliers of probiotics to the pharmacy market,” said Stephen O’Hara, chief executive officer of OptiBiotix.
“We see this as an important next step in building stable long-term revenues and increased brand recognition of LPLDL,” he added.
O’Hara has previously spoken of emulating the “Intel inside” model, where the presence of a branded component in a product adds to the commercial allure of a product, and this agreement is a major step forward in terms of establishing LPLDL as a differentiating component of cardiovascular health products.
“We anticipate this is the first of many opportunities for multiple revenue streams from sales of the strain, white label, and branded products in different presentations and formulations to meet the needs of a diverse range of national and international markets," O’Hara said.
“Whilst no financial details are disclosed at this time, we understand that HLH’s decision to increase its financial commitment for LP-LDL is due to greater than anticipated product interest,” revealed OptiBiotix’s house broker, finnCap.
“Whilst we hold off issuing forecasts at this time, we are encouraged by OPTI's progress to date and management’s continued delivery on key commercial milestones laid out at the time of our initiation,” the broker added.
Shares in OptiBiotix were 2.1% higher at 73p in lunchtime trading.
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