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Distribution agreement for Lactobacillus plantarum LPLDL® in Japan
11 February 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 appointed EIWA Trading Co. Ltd. ("EIWA") as its exclusive distributor for LPLDL® in Japan.
The agreement grants EIWA the exclusive rights to import, market and distribute OptiBiotix's cholesterol and blood pressure-reducing probiotic strain Lactobacillus plantarum LPLDL® in Japan for a period of three years. Market exclusivity is linked to increasing minimum annual volumes in order to maximise the financial return for both parties providing some surety of income for OptiBiotix over the next three years.
Based in Japan, EIWA was founded in 1963 as a distributor of food ingredients and flavours. It started its operations in functional ingredients 25 years ago and has been a major player in probiotics distribution in the country for the last ten years, servicing both food, dairy and food supplements companies. This agreement creates opportunities for EIWA to market LPLDL® for use as a food and dairy ingredient as well as a food supplement.
Asia-Pacific is currently the main market for probiotics (Euromonitor, 2018), and Japan accounts for 45% of it. In Japan, dairy probiotic applications are culturally very well established and their market is forecasted to grow with a sizeable CAGR of 14% until 2023. Probiotic food supplements have been gaining significant momentum over the last number of years and their market growth rates are expected to outpace those of dairy probiotic products in the abovementioned period (Research and Markets, 2018).
Stephen O'Hara, CEO of OptiBiotix, commented: "We are pleased to announce this distribution agreement with EIWA. This deal provides OptiBiotix market access in Japan, the main national market for probiotics within the largest region for probiotics in the world. We have chosen EIWA as they are a well-known and respected provider of probiotics to the Japanese food, dairy and supplement industries, creating the potential to extend the use of LPLDL® beyond supplements in a major international market. This agreement is another step in OptiBiotix's strategy of building revenues and market presence of LPLDL® as the 'Intel' inside a wide range of food, dairy and supplement products around the world. We believe working with EIWA and similar partners around the world will provide the best opportunity of rapidly building LPLDL® into a valuable global brand."
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/ Scott Mathieson / 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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