OptiBiotix Health PLC (LON:OPTI) shares were higher on Thursday as it inked a distribution deal for its SlimBiome weight management product in the German market.
The deal is with Draco Ingredients, a German firm focused mainly on the distribution of dairy-based ingredients to the dairy, sports and medical nutrition sectors, and will see market exclusivity linked to minimum order quantities to maximise financial returns.
WATCH: OptiBiotix 'entering its next stage of development' with a focus on profitability
Opti said the new deal will build revenue potential and brand recognition for SlimBiome while also reducing commercial risk.
“The timing of this agreement fits particularly well with our recent focus on creating the building-blocks necessary to accelerate and expand our reach to customers globally”, said Fred Narbel, managing director of Opti’s prebiotics division.
“This deal builds on the work done in 2019 to qualify multiple manufacturers of SlimBiome in Europe and around the world to de-risk our supply-chain in the case of a hard Brexit and give us access to one of Europe's largest economies."
The shares were up 2.7% at 48.3p in early trading.
--Adds share price--