OptiBiotix Health plc (LON:OPTI) saw its shares jump on Tuesday after the life science firm noted media interest generated by a potential commercial partner, Seed Health.
In a statement, the AIM-listed firm - which is developing compounds to tackle obesity, high cholesterol, diabetes and skin care - pointed out that Seed has purchased its LP-LD product for use in a multi-strain product intended for launch in the US in May 2018.
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The group noted that an article in Business Insider US refers to clinical studies published in the scientific journal PLOS One showing that one of the probiotics contained in Seed's multi-strain product reduced LDL or "bad" cholesterol and increased HDL or "good" cholesterol.
OptiBiotix reported the results of its human studies using LP-LD in April 2016, and subsequently published them in PLOS in December 2017 and at international conferences, which demonstrated statistical and clinical significant reductions in cholesterol and blood pressure.
The group said the Business Insider article provides a link to OptiBiotix's publication and discloses the use of LP-LDL in Seeds’ product.
OptiBiotix said it can confirm it is in discussions with Seed to agree commercial terms for the use of its LP-LDL strain in Seed's products in preparation for a May launch in the US.
The group added: “Whilst these negotiations are at an advanced stage, they are one of a number of discussions with US partners which may or may not progress to legal agreement. If or when commercial terms are concluded, a further announcement with be made.”
Seed have developed an innovative product concept which combines multiple strains of different probiotics which have been selected because of strong clinical trial data.
International commercial and media interest
Stephen O'Hara, OptiBiotix’s CEO, commented: "We are pleased that the strong science, successful human studies and international awards at major scientific conferences have attracted international commercial and media interest in LP-LDL.”
He added: “This has allowed OptiBiotix to sign manufacturing, formulation/application and distribution partnerships with fast-growing companies with leading market positions in multiple industry sectors across the world.
“We look forward to the opportunity of announcing deals with similar partners in the fast-growing US marker once these have been concluded."
In early trading, OptiBiotix shares were 8.7% higher at 75p.