Extension of LPLDL® supply agreement with SACCO

RNS Number : 6600F

OptiBiotix Health PLC

11 March 2020

 

OptiBiotix Health plc

("OptiBiotix" or the "Company")

Extension of LP_LDL® supply agreement with SACCO S.r.l.

OptiBiotix Health plc (AIM: OPTI), a life sciences business developing compounds to tackle obesity, cardiovascular disease and diabetes, announces that its wholly-owned subsidiary ProBiotix Health Ltd. ("ProBiotix"), has signed a new global manufacturing and supply agreement with Sacco S.r.l. ("Sacco") that modifies and extends their existing relationship through to the end of 2023.

Under the terms of the agreement, Sacco will manufacture LP_LDL® for ProBiotix under:-

i.  A global non-exclusive licence for the dietary supplement and food and dairy markets; and

ii.  An exclusive licence for the drug and biotherapeutic market

The agreement changes the original profit-sharing agreement (RNS: 22 August 2017) to a manufacture and supply agreement with pricing discounts for increasing sales volumes. This allows the Company to benefit from a reduced price of goods as sales volumes grow and provide more evenly distributed income throughout the year.  The agreement also includes commission payments from Sacco for LP_LDL® sold to dairy customers. 

Steve Prescott, CEO of ProBiotix, commented: "We are pleased to announce this agreement with Sacco, which extends our relationship with them for the next four years. Sacco's commitment to manufacturing excellence, including the recently announced pharma cGMP validation of LP_LDL®, and their ability to manufactureof LP_LDL®in multiple facilities gives us confidence of a quality product and uninterrupted supply. The changes to this agreement reflectthe focus on building a profitable business as we renegotiate supply agreements with partners as sales volumes grow to increase margins."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For further information, please contact:

OptiBiotix Health plc		www.optibiotix.com
Stephen O'Hara, Chief Executive		Contact via Walbrook below
Cairn Financial Advisers LLP (NOMAD)
Liam Murray / Jo Turner / Ludovico Lazzaretti		Tel: [phone]
finnCap (Broker)
Geoff Nash/ Kate Bannatyne (Corporate Finance) Camille Gochez (Corporate Broking)		Tel: [phone]
goetzpartners securities Limited Ulrich Kinzel Walbrook PR Ltd	Tel: [phone]
Anna Dunphy		Mob: [phone]

About OptiBiotix - www.optibiotix.com  

OptiBiotix Health plc (AIM: OPTI), which was formed in March 2012, brings science to the development of compounds which modify the human microbiome - the collective genome of the microbes in the body - in order to prevent and manage human disease and promote wellness.

OptiBiotix has an extensive R&D program working with leading academics in the development of microbial strains, compounds, and formulations which are used as active ingredients and supplements. More than twenty international food and healthcare supplement companies have signed agreements with OptiBiotix to incorporate their human microbiome modulators into a wide range of food products and drinks.

OptiBiotix is also developing its own range of consumer supplements and health products. The Company's current areas of focus include obesity, cardiovascular health, and diabetes.

Caution regarding forward looking statements

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect", ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.

 

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