ProBiotix has signed a three-year licence deal with Singapore-based Biovagen Healthcare for its Vietnam subsidiary Viet Phap to exclusively market the CholBiome and CholBiome x3 products in the south-east Asian country.
Biovagen, which will cover the costs of registering the products with local health authorities, is only guaranteed market exclusivity if it hits minimum sales orders.
OptiBiotix said Biovagen will need to secure half the minimum quantity for the first year within six months of signing the agreement to maximise the financial return for both sides.
The AIM-listed group, which has been mulling a potential spin-off float of the ProBiotix business, said Vietnam was a key market, with a fast growing population and economy, including a rapidly-ageing population where cardiovascular disease is responsible for 31% of all deaths and around 20% of the population suffers from high blood pressure.
OptiBiotix said the Biovagen agreement was “a strategic step” to take the CholBiome products to international markets under its own OptiBiotix brand label or white label distributors brand products.
“As manufacturing volumes increase the unit costs of each product decreases improving OptiBiotix's margins. This strategy also creates a global demand for OptiBiotix's cholesterol LPLDL probiotic within CholBiome products which helps build brand recognition and brand value.”
Viet Phap, which currently represents some of the main global generic drugs, specialty pharmaceuticals and probiotics companies, will market CholBiome, which includes probiotic strain Lactobacillus plantarum (LPLDL), as BioStatin, and cholesterol reduction supplement CholBiome x3 as BioStatin Platinum.
OptiBiotix business development director Luis Gosálbez said the requirement for annual and increasing guaranteed minimum sales orders “helps builds recurring revenues and extends the sale of LPLDL into another territory to support further sales growth”.
Shares in OptiBiotix were up 2% to 84p in early trading on Monday.