OptiBiotix Health plc (LON:OPTI), a life sciences business developing compounds to tackle obesity, high cholesterol, diabetes and skin care, has this morning told DirectorsTalk it has entered into a three year supply agreement with HLH BioPharma Vertriebs GmbH (“HLH”) covering the supply of LP(LDL) (R) capsules. The agreement grants HLH a non-exclusive license to produce, package and commercialise products containing OptiBiotix’s cholesterol reducing LP(LDL) (R) strain with a view to maximising the financial return for both parties. This agreement follows on from the sales order of 100,000 units of LP(LDL) (R) to HLH announced on 25 April 2017 and reflects growing consumer interest and distributor confidence in the products market appeal.
HLH have over 20 years’ experience in the distribution of probiotic and natural products under the brand names Lactobact(R) and Casa Sana(R) and is one of Europe’s leading suppliers of probiotics to the pharmacy market.
HLH is based in Germany and has established an international reputation for providing high quality and scientifically validated innovative products. LP(LDL) (R) will be supplied as bulk capsules which will be packaged and branded as part of HLH’s market leading Lactobact(R) brand.
This agreement provides mutual commercial commitment with ongoing revenue and reflects the growing confidence in the science behind LP(LDL) (R) as a functional component and its future Brand value in a wide range of consumer healthcare and pharmaceutical products. The contract is a result of OptiBiotix’s innovative science, good clinical data, strong key opinion leader support, and the products ability to reduce both cholesterol and blood pressure. Sales volumes are difficult to estimate in this new and developing market and further updates will be provided as HLH build market presence and revenue streams.
This is the first important step in a business to business (B2B) strategy of bringing OptiBiotix’s science and the LP(LDL) (R) brand together with a partner’s national brand portfolio and market presence to serve multiple consumer healthcare and pharmaceutical markets around the world.
Stephen O’Hara, CEO of OptiBiotix, commented: “We are pleased to announce this three year supply agreement with HLH which demonstrates an ongoing financial commitment in building the brand from one of Europe’s leading suppliers of probiotics to the pharmacy market. We see this as an important next step in building stable long-term revenues and increased brand recognition of LP(LDL) (R). We view this as the ‘Intel’ inside a wide range of products for cardiovascular health across both consumer and pharmaceutical markets around the world. We anticipate this is the first of many opportunities for multiple revenue streams from sales of the strain, white label, and branded products in different presentations and formulations to meet the needs of a diverse range of national and international markets.”