OptiBiotix Health plc (LON:OPTI) said it has teamed up with an unnamed pharmaceutical and food supplements group to commercialise its CholBiome product in Bulgaria.
With access to 60% of the country’s pharmacies and 15,000 GPs, OptiBiotix’s new partner provides the commercial heft required to get started in this new territory.
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The agreement grants the Bulgarian partner exclusive distribution in return for local product registration. It must hit a three-year sales to target to retain the exclusivity.
First revenues are expected in the first quarter of 2019.
Cholesterol and blood pressure treatment
The product itself is a natural alternative to drugs used to lower cholesterol and blood pressure.
Per Rehné, OptiBiotix’s commercial director, said: "We chose the company for its significant market access in Bulgaria and solid track record for growing product sales.
“This agreement is a strategic step to build the distribution sales channel for CholBiome products in the European market and eliminates intermediates in the supply chain with a shorter route to market and higher value to OptiBiotix.”
Wednesday’s announcement is the second significant update the group has provided to the market this week.
Second big announcement
On Monday, it announced the formation of ProBiotix Health and the appointment of Adam Reynolds as chairman – a precursor to a spin-off of the business.
The new company will be home to cholesterol and blood pressure reducing bacteria strain, LPLDL.
In a statement, investors were told the division has now reached a stage of “scientific and commercial maturity” to make the separation a practical next move.
Reynolds, OptiBiotix chief executive Stephen O’Hara and the team will be hoping to emulate the success of the Skinbiotherapeutics demerger.
An initial £250,000 investment in the business is now worth just shy of £12mln, while the former subsidiary is currently carrying out first in human trials of its potentially breakthrough skin cream.