OptiBiotix profit after tax £3.2M

OptiBiotix has made significant progress in the last six months developing a pipeline of innovative products with a strong scientific and clinical evidence base, said Stephen O’Hara, CEO of OptiBiotix Wednesday in the half year financial report.

This has stimulated industry interest from both national and multinational companies in selling the company’s products in both consumer health and pharmaceutical markets around the world, he added.

Furthermore, he pointed out that the microbiome has been described by commentators as healthcare’s ‘most promising and lucrative frontier’. O’Hara said: “As OptiBiotix’s microbiome modulating platforms generate products and multiple revenue streams from royalties and supply agreements, there is potential for a significant enhancement in the value of the company.” 

The company has posted profit after tax of £3.2m reflecting an adjustment of £4.1m for the change in value of the investment in Skinbiotherapeutics following the listing on AIM in April 2017

In the given period, the company has entered a supply agreement for LPLDL capsules with HLH Biopharma GmbH, and with Pharmabiota Ltd for New Zealand & Australia. It also finished human taste studies on SweetBiotix showing sweetness of between 140X and 223X that of sucrose at equivalent concentrations. Among highlights of the period, the company also listed its global manufacturing and supply agreement with Sacco S.r.l.

Chairman’s and Chief Executive Statement

In a mutual statement, they said that this period reflects the start of the transition of OptiBiotix from a research and development company into a commercial business, with the appointment of a commercial director, sales and marketing director, product launches of both SlimBiome, and its cholesterol reducing probiotic (LPLDL), and its first of many expected revenue generating sales agreements.

“This transition heralds the start of a new phase in the company’s development as the science matures into a growing pipeline of innovative products to prevent, manage and treat many of today’s chronic lifestyle diseases. As the promise of the microbiome materialises into products across an increasing number of OptiBiotix’s platforms and industry interest translates into multiple revenue streams from royalties and supply agreements there is potential for a significant enhancement in the value of the Company,” their statement reads.

Among key achievements, the two leaders pointed out among other things an agreement with Tata Chemicals, one of India’s leading suppliers of food ingredients, to develop weight management products containing SlimBiome for the Indian market

Outlook

OptiBiotix is continuing its strategy of developing microbiome modulators for large markets (>£100m) where there are high growth opportunities (CAGR >10%), and a large unmet need. This will be achieved by developing our own IP and acquiring new IP, technologies or assets in areas of strategic interest in the microbiome space, when the opportunity arises, the Chairman and the CEO said in their comment.