Distribution agreement with Ravenswood for SlimBiome®
RNS & Investor News
License agreement for CholBiome® and CholBiome®x3 in Vietnam
10 June 2019
OptiBiotix Health plc (AIM: OPTI), a life sciences business developing compounds to tackle obesity, cardiovascular disease and diabetes, announces that its fully-owned subsidiary ProBiotix Health Ltd., has signed a license agreement with Biovagen Healthcare Pte. Ltd. ("Biovagen") for the commercialisation of ProBiotix's cholesterol management products CholBiome® and CholBiome®x3 in Vietnam.
The agreement grants Biovagen exclusive rights to market both products in Vietnam for an initial period of three year with Biovagen covering the costs of registering the products with local health authorities. Market exclusivity is linked to minimum sales orders with half the minimum quantity for the first year required within six months of signing this agreement to maximise the financial return for both parties.
Based in Singapore, Biovagen is a leading pharmaceutical and probiotics distributor in Vietnam through its local subsidiary Viet Phap International Co., Ltd ("Viet Phap"). Viet Phap currently represents some of the main global generic drugs, specialty pharmaceuticals and probiotics players in the country. CholBiome®, ProBiotix's product for cholesterol maintenance featuring its lead probiotic strain Lactobacillus plantarum LPLDL®, will be marketed as BioStatin, whereas CholBiome®x3, the company's flagship product for cholesterol reduction, will be marketed as BioStatin Platinum.
Vietnam's population is 97 million todayand is expected to reach 120 million by 2050. Its economy has developed dramatically over the last three decades and shows strong growth rates of 6.5-7% annually. This trend is expected to continue in the years to come (The World Bank). With a rapidly-aging population, cardiovascular disease is responsible for 31% of all deaths (equivalent to around 170,000 per year), and around 20% of the population suffers from high blood pressure (World Health Organisation). Good access to healthcare in the country made Vietnam rank second in the ASEAN region (Association of Southeast Asian Nations) in The World Bank's 2018 Human Capital Index, only after Singapore (which ranks first worldwide).
This agreement is a strategic step to take OptiBiotix's CholBiome® and CholBiome®x3 products to international markets as own label (OptiBiotix's brand) or white label (distributors brand) products. As manufacturing volumes increase the unit costs of each product decreases improving OptiBiotix's margins. This strategy also creates a global demand for OptiBiotix's cholesterol LPLDL® probiotic within CholBiome® products which helps build brand recognition and brand value.
Dr. Luis Gosálbez, Business Development Director of OptiBiotix, commented: "We are pleased to announce this agreement which represents another step in extending the geographical reach of LPLDL® containing products into the large and rapidly growing Asian market. The requirement for annual and increasing guaranteed minimum sales orders helps builds recurring revenues and extends the sale of LPLDL® into another territory to support further sales growth. Vietnam is an emerging economy and with Biovagen's experience, expertise and local network, will enable our CholBiome®s to reach thousands of patients suffering from high cholesterol and high blood pressure. This is another example of OptiBiotix's commercial strategy of working across multiple levels of the value chain (manufacturer, formulator and distributor) for the supply of white label and own label branded products. This means we are able to derive revenue from both the sale of CholBiome® andCholBiome®x3 products and LPLDL® as an active ingredient."
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
For further information, please contact:
|OptiBiotix Health Plc
Stephen O'Hara, Chief Executive
Contact via Walbrook below
|Cairn Financial Advisers LLP (NOMAD)|
|Liam Murray / Jo Turner||Tel: 020 7213 0880|
|Geoff Nash / Kate Bannatyne (Corporate Finance)
Camille Gochez (Corporate Broking)
|Tel: 020 7220 0500|
|Walbrook PR Ltd
|Tel: 020 7933 8780 or [email protected]
Mob: 07876 741 001
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.
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