OptiBiotix Health PLC (LON:OPTI) said it has modified its agreement with partner Sacco for its LPLDL cholesterol-lowering additive and extended it out to 2023.
Instead of the original profit-sharing arrangement, it now becomes a manufacture and supply deal with pricing discounts for increasing sales volumes.
Sacco will make LPLDL under a non-exclusive licence for dietary supplements and the food and dairy markets and will be the exclusive supplier for the drug and biotherapeutic areas.
Under the new contract, the company said it would benefit from a reduced price of goods as sales volumes grow, which in turn should provide more evenly distributed income throughout the year.
The new deal also includes commission payments from Sacco for LPLDL sold to dairy customers, it added.
Steve Prescott, chief executive of OptiBiotix’s ProBiotix business, said: “The changes to this agreement reflect the focus on building a profitable business as we renegotiate supply agreements with partners as sales volumes grow to increase margins."