Microbiome Specialist Entering Commercial Phase
1) Stephen OHara : 12.74%
2) Finance Yorkshire : 12.7%
*31ST May 17 *31ST May 17
The main features of OptiBiotix key products are summarized in Table 1.
Just recently OptiBiotix was awarded important prizes at ProBiota and Food Matters, two key industry events, showing the strong scientific
and consumer rational behind their key products in the probiotics and weight management areas.
OptiBiotix is pursuing a commercial strategy based on deal opportunities across multiple levels of the value chain, starting from
manufacturing agreements such as the profit sharing agreement signed in May 2017 with Sacco Srl for the production of LPLDL and
Knighton Foods (November 2017), which is a 100% owned subsidiary of Premiere Foods, for the production of SlimBiome.
The Company is also seeking deals for the supply of white label and branded products to food producers and consumer health companies,
up to distribution agreements directly with retailers.
OPTIBIOTIX HEALTH PLC
OPTIBIOTIX HEALTH PLC
This multi-channel strategy will enable OptiBiotix to maximize the income potential of every product, whilst limiting the risk related to
any individual deal.
As shown above, OptiBiotix is pursuing a commercial strategy articulated around several revenue streams.
As an example LP-LDL platform generates sales via B2B, bulk product and retail sales.
SlimBiome income derives from profit-sharing agreements with several partners as Knighton, Cereal Ingredients and from own label
OptiBiotix has products on markets for cholesterol so we see a low regulatory and development risk and a low manufacturing cost as
the strain is a very fast grower.
As brand awareness and products' recognition build up on the back of the first few deals recently announced, we expect OptiBiotix to
be able to attract the interest of larger partners such as multinational companies with a turnover in excess of $100mn. This is expected
in turn to lead to larger corporate and retail deals.
It is hard to precisely estimate the size of the market addressable by OptiBiotix products, as the science behind the therapeutic
benefits deriving from the modulation of the human microbiome is still young and new potential applications are continuously
discovered. According to Research and Markets, a research firm, the microbiome market is rapidly growing at an annual rate around
Furthermore, OptiBiotix products, such as LPLDL, can be combined in a number of formulations to deliver enhanced health benefits.
Euromonitor, a business intelligence firm, expects the global dietary supplements market to growth from c. $50bn in 2016 to over
$60bn in 2021. Within that, the supplement segment alone is expected to grow in the US from $2bn to about $3.3bn by 2021.
Although the modulation of the microbiome is attracting the interest of many companies and investors, OptiBiotix appears to be quite
unique in its focus on solving specific health problems, rather than general wellbeing, whilst targeting the consumer health segment, at
least in these early days of its commercial expansion.
OptiBiotix is rapidly transitioning from being focused on product development to the market launch of their products. OptiBiotix
launched SlimBiome and LP-LDL in May 2017 at Vitafoods, a European exhibition, and Supply Side West in Las Vegas at the end of
September 2017. This lead to eight deals in the last 6 months of 2017.
We understand that the Company is actively pursuing a wide range of commercial deals, including licensing, profit sharing and
distribution agreements, across multiple geographies. In the last couple of years, OptiBiotix has already entered into development and
commercial deals with several internat
Try as I may to get info on products to-date, so we can truly gauge the interest and market penetration - I wasn't successful. However, I have learned OPTI have around 30 formulations of LP-LDL and working with which have the science, cost structure, and synergy to create a wide product ranges. Of course it remains to be seen if they can monitise all of these formulations. It's clear they are capable of using them in wide range of formulations for specific conditions, and in a wide range of deliver mechanisms that we know of. Conspicuous by its absence, are the dairy products - No doubt this is in the pipeline and in the capable hands of SACCO, whom are developing this market separately.
The pipeline of products is growing with each partner, for example, SlimBiome has been shown it can be used in breaded products, coffee, biscuits, yoghurts, gummies (kids sweets apparently), muesli pots, porridge pots, healthy snacks such as yoghurt coated fruits, bars and meals, and of course cereals a puffs, flakes etc. No doubt some of these will be launched via GoFigure, as well as the online store, which will of course act as an important shop window, which is very important because LP-LDL & SlimBiome are backed by science and FDA approved. It naturally follows, each product launch not only derisk the company, it validates the science behind the product(s), this in turn adds value to the product(s), the IP and the company platforms and of course, the company as a whole.
I also tried to encourage product eta announcements, citing both HLH and Galenicum had no issue telling me when I asked. However, SOH makes a very important point on this, which hadn't occurred to me.
"We agree timelines with partners but am wary of sharing with investors as these are outside my control and often change. Making a statement based on others promises is high risk. We typically limit deals to 3 years (life of the contract, NOT window to have a product on sale) with opt-outs for performance issues so they have to move quickly".
From memory, these performance related contracts have a 10% yoy sales growth built in. Important, as this ensures the partner has an incentive to grow sales or lose the contract, which of course protects OPTI from being lumbered with a partner not putting in the structure to build sales.
Increased production capacity by partners; CSL, SACCO and Fine Foods would suggest they take this seriously.
Hi elrico, an excellent summary and response from SOH!!
Thank you very much for Posting.........really excellent insights!!
Regarding the comment, "As you have identified anyone reading the SBTX report should be able to see the potential opportunity for SBTX...." , can you help me identify/locate the "SBTX report" Stephen refers to please?
Also, will you be attending UK Investor at the QE II Conference Centre on 21st April please?
Following on from the previous post. I contacted SOH and send him screenshot of what Parob discovered within the app. SACCO's very detailed marketing material for OPTI's LP-LDL.
SOH comments based on them.
Sacco are an excellent partner who have invested heavily (~ Â£500k) in supporting LP-LDL given us booth time at major exhibitions and employing new staff to take the product across Europe, and the USA, and take the dairy product to Asia. THE INCREASED CAPACITY IS A REFLECTION OF THE INTEREST IN LP-LDL and OTHER OPPORTUNITIES BEING DEVELOPED BY OPTIBIOTIX, and Saccoâs reputation and expertise. We had numerous opportunities to work with global manufacturers but chose Sacco/CSL for their industry reputation, extensive network and track record in building sales. We believe we have made the right choice.
We are seeing a similar commitment from Cereal Ingredients which we believe will pay major dividends in the US market.
I hope this type of news helps build the picture for investors of our commercial strategy whereby we strike partner agreements with manufacturers, formulators, and distributors taking a PERCENTAGE OF EACH PART OF THE VALUE CHAIN to give us multiple revenue streams form multiple partners across multiple territories. This is unlike any other company who tend to focus on a single technology, single product platform, but is designed to mitigate risk and build a Â£200m+ business.
We started on the commercialisation path in May (Europe) last year for SlimBiome and LP-LDL but investors should not forget that whilst lst SlimBiome and LP-LDL are starting to build sales their are large opportunities with microbiome modulators, OptiBiotics, SweetBiotix, and of course SBTX. I believe any one of these has the potential to be a Â£60m business in its own right. As you have identified anyone reading the SBTX report should be able to see the potential opportunity for SBTX and recent rises in the shareprice would seem to support this. Manufacturing scale up, the data on Staph aureus, are significant milestones which with a an upcoming clinical study should lead to a significant value enhancement.
Please feel free to share as it demonstrates their is a lot going on in the background with our current partners. We hope to add further partners to our ever expanding network whilst avoiding overlap with current deals as we continue to progress our strategy.
You can find the screenshots here;
Agree, 'share price could do with a boost' but OPTI has been singularly slow in converting these 'big' deals into profit. And I don't see a change in the downward trend until the cash comes in.
Playing devils advocate, I see the announcement of the next 'big' deal as being totally honest and finishing with"...... and our profit in 2025 will be up substantially up due to this deal."
Its actually been two months since the last deal was announced. With a potential 30 deals in the pipeline I would of thought there would have been another by now. Share price could do with a bost - not that any deal without numbers is going to help it !
Maybe they are holding back to announce with full year results?
I'm currently smarting at the £20m+ valuation attributed to SweetBiotix, pre commercial. Remember, Chr Hansen paid $83m for LGG strain in 2016. I actually thought the £20m+ was a tad high, given there appears to be no commercial agreement in place for SweetBiotix.....that we know of. Given this, I asked how this valuation had been arrived at.
SOH: "Thats the strong indications from industry which reflects the scale of the opportunity and industry need in a consumer environment where sugar and artificial sweeteners are under threat and impacting on companies sales. As outlined in our interims and RNSs we have extensive IP which limits others working in this field, human study data, and a number of development programs creating potential for healthy sweet fibres and a customised oligosaccharide derived from Stevia glycosidases which is 223X as sweet as sucrose without the aftertaste (as reported in Julys RNS). We of course still need to realise the undoubted potential, which if successful and given the scale of the opportunity, will reflect very nicely on OptiBiotixs valuation."
Another thought came to mind. Given the hurrar building around the human biome and the clamber for innovative ways to combine the human gut bacteria into everyday products, it surely follows that OPTI's IP will grow in value, more so as it becomes commercial. Perhaps we are entering a new world of IP valuations where they become real assets and become increasing valuable as they become commercial entities. I'm sure all of this is a given, but perhaps the added value is increasing ahead of commercial progress in anticipation. Of course the added bonus - All OPTI's IP is double locked, which is the point SOH is making when he says this limits 3rd party's working in the same field. This in turn must make OPTI more of a target with the M&A arena.
Big thanks to Primal sharing his exchange with SOH and a follow up from me, which is self explanatory.
I asked SOH about TWs comments, also asked him about other things and here is his detailed great response:
Tom has no other information other than that disclosed to all investors but has picked up the sentiments well and based on his experience has got a good sense of the opportunities. I thought he wrote a well balanced just before Christmas which showed good insight.
He is recognising that the market opportunity in the microbiome is very big, the application areas OptiBiotix has targeted (cholesterol reduction, weight reduction, sweet fiobres) are large markets with an unmet need, we are attracting interest from large global partners (Tata, DSM) and industry leaders (Sacco, Gallenicum), and are building up commercial traction with 8 deals in the last half of the year of increasing magnitude. On top of this we have multiple opportunities developing in microbiome modulators, natural high intensity sweeteners, and sweet fibres, and approaches from a number of corporates looking at potential M&A opportunities. Added to this the potential for a dividend/dividend in speci and the massive opportunities for SBTX (skincare) in which we own a 42% stake we can see why a number of commentators see OptiBiotix as a very cheap share at the moment.
We are looking forward to 2018 and the team remain excited by the high level of interest in our technology and products. As previously commented on I have built OptiBiotix around multiple opportunities to reduce investor risk and this has created a large amount of interest across numerous areas, some of which overlap. Typically some of these opportunities dont develop but we have been fortunate that in OptiBiotixs case all these opportunities have developed, and in some cases like the SweetBiotix, created more opportunities than originally anticipated. This creates complexity as we try to negotiate with large corporates who want global exclusivity but move slowly and balance that with regional partners who have national expertise and will adopt easy and grow sales quickly. Most investors will have heard me talk about our multi revenue model where we get revenues from manufacturers of LP-LDL and SlimBiome (e.g Sacco, Knighton), formulators (e.g Nutrilinea, Cereal Ingredients etc), and distributors (e.g HLH, PharmaBiotica, Gallenicum etc). If they view the RNSs over the last year they will see a clear progression down this route which substantiates the model. The next stage is to extend the width of the funnel, the scale of the partner, and increase our retail presence. These are all underway and we should see develop further in 2018.
In light of SOH's detailed response to Primal's chat - I was concerned SweetBiotix may be subject to M&A at the wrong stage for LTHs. I also wondered about core valuations OPTI BOD attributed to it, if such a scenario occurred.
Primals question related to the valuation and how traders only see the short term value. My response was trying to highlight my strategy which I have often talked about and is presented in all our annual and interim reports has always been to build a multi-layered opportunity which diversifies investor risk and creates multiple opportunities which creates high value and investor return. My comment on SweetBiotix repeats what we have reported earlier in that we have M&A interest in a number of areas of OptiBiotix. However, as I have often stated there is no intention to sell off parts of OptiBiotix as we are only part way along the process off building value as we develop the science, build a substantive IP portfolio (which protects our commercial interests), prove product safety and efficacy in humans studies, and then build the revenues (which we only started last May). My point was that whilst traders are not seeing the value this is not the case with the industry with interest suggesting
Did anyone see those two big trades sneek in at 08.08 today? - only registered after hours and look like sells of £800k & £200k.
SP still up nicely on the day and in the last session last Friday.
Immenent good news around the coener (again!!)?
Last trading day before Xmas! Whats the chance of sp being "well over £1" by end of day?
Bloody annoying really, but still confident of a decent return.
Its been all about the numbers - or lack of them which has held the price back - and I do blame the tipsters because people expect the sp to reach certain targets at certain times and when they dont - they panic and sell, this has been the case for a while now - endless small sell trades and the Market Makers have dropped the sp to try to avert this.
This time last year HSR said " We thought 2016 was the year but we are sure 2017 will be!" - I wonder what they will say this year end??
We have had brilliant newsflow this year - regular contract wins with 30 more in the pipeline. Once the numbers start to come through for them then the punters will return, but when will it be? Didn't Opti announce the Tata deal this time last year?? Does it take a year to receive revenues from this? the same with the early deals this year - how long before they actually write a cheque to Opti?
In an interview with SOH early this year he did mention 18-24 months to become a £200m company - I guess he has worked out the income more acurately than TW - Lets not forget HSR is a tipping site for 25% gains in a short timescale - They got the company fundamentals right - just the timescale wrong.
I can't see the share price trend changing until some hard cash is put on the table from these deals. I bought years ago on the advice of TW who said we could expect over 100p within months. But the shares are way down. And heading lower?
I would not take for gospel anything Whinnyfroth said. Why would the BOD divulge to him, who has a dubious reputation at best, information not given to the shareholders?
I hold no shares and have no view on the merits or otherwise of the company but just council holders not to be too influenced by his ramping comments.
High blood pressure, or hypertension, hardens the arteries and increases the risk of heart disease
LPldl was selected after 4,000 microbial strains were screened
A reduction in levels of blood pressure required for a diagnosis of hypertension will highlight the advantages of non-prescription alternatives, believes Stephen OHara at Optibiotix Health PLC.
Last month the American Heart Association changed its classification of high blood pressure to a reading of 130/80 from 140/90, a move that instantly put half of the US population in the unhealthy category.
Reports in the UK have suggested that health watchdog NICE (National Institute for Health and Care Excellence) is also considering lower guidance, action that would classify millions more Britons as medically unfit.
There is no natural cut-off point above which hypertension definitively exists and below which it does not NICE said.
High blood pressure, or hypertension, hardens the arteries and increases the risk of heart disease, diabetes and strokes
Heart problems account for a quarter of all deaths in the UK.
OHara, Optiobiotixs chief executive, believes a new class of probiotics that modulate the human microbiome can help people with high blood pressure to manage the condition.
Statins are the standard treatment to lower cholesterol but O'Hara says LPldl is a viable non-prescription alternative.
We believe that our microbiome modulating probiotic, LPLDL, is not only a cutting-edge scientific development, but a safe and natural way for people to reduce their blood pressure, and to effectively manage their long-term cardiovascular risk, he said in an article in Nutraceutical Review.
A study at Reading University showed it was a safe and reduced LDL cholesterol by up to 13.9%, and blood pressure by 5.1%.
LPldl works by affecting the metabolism of bile acids in the intestine and was chosen after 4,000 microbial candidates were assessed using Optibiotixs Optiscreen platform.
Important message from the Financial Conduct Authority:
Posting inside information that is not public knowledge, or information that is false or misleading, may constitute market abuse.
This could lead to an unlimited fine and up to seven years in prison.
If you have any information, concerns or queries about market abuse, click here.
The content of the messages posted represents the opinions of the author, and does not represent the opinions of Interactive Investor Trading Limited or its affiliates and has not been approved or issued by Interactive Investor Trading Limited.
You should be aware that the other participants of the above discussion group are strangers to you and may make statements which may be misleading, deceptive or wrong.
Please remember that the value of investments or income from them may go down as well as up and that the past performance of an investment is not a guide to its performance in the future.
The discussion boards on this site are intended to be an information sharing forum and is not intended to address your particular requirements.
Whilst information provided on them can help with your investment research you need to consider carefully whether you should make (or refraining from making) investment or other decisions based on what you see without doing further research on investments you are interested in.
Participating in this forum cannot be a substitute for obtaining advice from an appropriate expert independent adviser who takes into account your circumstances and specific investment needs in selected investments that are appropriate for you.