OptiBiotix Healt, Sacco expand manufacturing and supply agreement

OptiBiotix Health, has entered into an agreement for the manufacturing and supply agreement with Sacco for the USA and the rest of the world, after announcing in March the European manufacturing and supply agreement.

The agreement grants Sacco an exclusive licence to manufacture and supply OptiBiotix’s cholesterol and blood pressure reducing LPLDL strain in the US and ROW, in return for 50% of the profit, with a guaranteed cost of manufacture and minimum sales price per kilogramme to secure against discounting.

The agreement includes access to the US, the worlds largest probiotic market, with an estimated retail value of $7.1 billion per year, and extension of LPLDL into dairy applications utilising Sacco’s network in the dairy industry to develop commercial opportunities identified by them in the global $35.5 billion probiotic dairy market.

Furthermore, it includes the economies of scale, significantly reducing the manufacturing cost of LPLDL, increasing OptiBiotix’s profitability, and opening up new application opportunities. Also, the long-term security of supply with Sacco’s ability to produce at different locations from multiple facilities

Another point of the deal is commitment from Sacco to support the funding of further developments of LPLDL, including marketing and human studies, to expand the commercialisation of LPLDL into new markets

“This agreement is a strategic step to access the US probiotic supplement market, and to extend the opportunities offered by LPLDL into dairy applications, with one of the largest and internationally respected supplier of probiotic ingredients. The US is one of the largest and fastest growing probiotic markets in the world, with supplements alone accounting for $2.06 billion sales, with a projected 55% growth to $3.3 billion by 2021. Extension of LPLDL into dairy applications widens the commercial opportunity by accessing the $35.5 billion probiotic dairy market,” the company said in its press release.