OptiBiotix Health PLC (LON:OPTI) said its partner ALFASIGMA has launched a food supplement containing the cholesterol-reducing LPLDL probiotic strain developed by subsidiary ProBiotix Health.
ALFASIGMA, which generates revenues of €1 billion, operates in 90 countries and has 3,000 employees globally, will market this first-of-its-kind nutraceutical probiotic in Italy for cholesterol reduction. The companies inked an exclusive commercial agreement in the summer of 2018.
ProBiotix said the launch was being supported by an “extensive" marketing campaign aimed at general practitioners, cardiologist and pharmacists, to promote treatment of at-risk patients using a natural, scientifically-formulated, food supplement.
Italy is the largest probiotic supplement market in Europe, and the second-largest market in the world worth an estimated €450mln.
ProBiotix chief executive Stephen Prescott said: "The launch of this product is another step in establishing LPLDL as a global probiotic brand. This agreement is another step in building ProBiotix Health into a profitable business in 2020."
Beginning of a long-term revenue growth cycle
In a note to clients, analysts at broker goetzpartners Securities said they “remain positive as to the commercial potential of OPTI's functional ingredients as consumer awareness grows.”
They added: “The recent launches indicate growing momentum into 2020, when we expect existing agreements to start delivering substantial revenue streams and further demand for OPTI's products.”
The analysts reiterated an ‘outperform’ rating and 97p target price on Optibiotix shares, based on their view “that OPTI is at the beginning of a long-term revenue growth cycle.”
In late trading on Monday, Optibiotix shares were changing hands at 55p each, steady on Friday’s close.
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