OptiBiotix Health is entering the next phase of the its strategy is to expand the Group’s capabilities by reinvesting proceeds from the recent sale of shares held in SkinBioTherapeutics plc, which generated approximately £2 million.
The company said these funds have provided growth capital to broaden and expand the Group’s sales and marketing team, accelerate new product development, increase marketing spend and explore direct to consumer channels in strategic markets. Furthermore, these funds also allow the Company to invest in acquiring new technologies to create a future pipeline of products. This supplements existing plans for expanding product ranges into sports nutrition (LeanBiome™) and healthy ageing (WellBiome®), extending SlimBiome®, OptiBiome®, and LPLDL® product lines and territories, increasing the number of larger partners, and growing gross profit by moving up the value chain to sell a greater portion of finalised products than functional ingredients.
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Stephen O’Hara, CEO of OptiBiotix Health said: “This strategic and commercial update demonstrates the strong progress OptiBiotix has made against its stated aims. We are particularly pleased at concluding three commercial agreements at the end of 2021 with well-known national and international partners which create the potential for volume sales and help enhance the reputation of OptiBiotix and its products around the world. We believe new product launches in 2022, the extension of territories with existing partners, new product platforms, and the commercial realisation of our development pipeline, allow us to look forward with confidence to further commercial progress of the Group in the current year and beyond.”
The pandemic effect
2020 and 2021 have been difficult years for many companies with an unprecedented trading environment created by COVID-19. Despite the challenges OptiBiotix reported year on year revenue growth of 104% in 2020 , as well as 44.5% growth in H1 2021 compared to H1 2020. It also succeeded in its stated aims of attracting a number of larger partners, achieved Health Canada and BRC accreditation, won the award for best weight management product in the USA, created a new subsidiary in India, and added significant commercial expertise to its team. With more large partners, new product platforms in new markets, extensions of product lines and territories with existing partners, a greater focus on D2C, and greater investment in sales and marketing 2022 should be a year of strong growth.
Partnerships
The Group’ ambition is to secure eight to ten large national or international partners for first-generation products and two to three partners for each of the second-generation technologies. This is expected to give the Company a presence in markets of strategic interest and a level of contingency as partners change over time.
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