Result of AGM
RNS & Investor News
Distribution of products in China and Hong Kong
05 May 2020
OptiBiotix Health plc (AIM: OPTI), a life sciences business developing compounds to tackle obesity, cardiovascular disease and diabetes, announces it has entered into a three-year distribution agreement with Pierce Group Asia subsidiary, Pierce ESIM Pte Limited ("Pierce").
Founded in 2002 and headquartered in Singapore, Pierce specialises in cross border corporate development and investments with a focus on high growth partnerships. Pierce is an Asian focused B2B product developer and distributor with an experienced leadership team and extensive corporate network.
The agreement grants Pierce exclusive rights to import and commercialise OptiBiotix's SlimBiome® and LPLDL® to manufacture, develop, and sell a wide range of finished products to China and Hong Kong, with the aim of maximising the financial return for both parties. Under the agreement, Pierce will also conduct business development activities in other Asia-Pacific geographies to advance OptiBiotix's commercial interests. Market exclusivity is linked to minimum yearly order quantities.
This agreement is an important step in meeting the growing need for weight management and cardiovascular products in the large consumer markets of China and the Asia Pacific.
- China has the largest number of overweight or obese people worldwide with about 46% of adults and 15% of children being obese or overweight (Wang, Y. Lancet 2019)
- Non-communicable diseases account for 87% of total adult deaths in China of which cardiovascular diseases ("CVD") account for almost half (45%)*
- China has one of the highest CVD death rates in the world with one in five adults in China estimated to have cardiovascular disease*
- The Chinese Vitamins, Minerals & Supplements industry increased 9.2% between 2017 and 2018 to reach a total market size of US$21 billion**
* World Heart Federation factsheet 2017
**TMO Group 2019
This agreement represents another strategic step to take OptiBiotix's SlimBiome® and LPLDL® to international markets and follows on from the announcement of over 60 commercial agreements in the last three years. These include deals for Gulf Cooperation Countries (RNS: 17 March 2020); Australasia (RNS: 31 March 2020); Europe including Italy (RNS 21 June 2018) , Germany (RNS 15 March 2019), Russia (RNS: 9 January 2019); India (RNS: 16 May 2018 and 7 January 2019); South America (RNS: 12 February 2020) and the USA (RNS: 22 May 2018 and 31 January 2020).
Mike McGeever, Chairman of Pierce said: "We are pleased to be working with OptiBiotix in marketing and distributing their products to the large and growing Chinese and Hong Kong markets. We believe in the benefits that OptiBiotix product portfolio will bring to the people of China and Hong Kong to address growing rates in obesity and other chronic diseases. We will leverage our team's experience in Asia and within the health sector to deliver a partnership of value for both parties."
Stephen O'Hara, CEO of OptiBiotix, said: We are pleased to announce this agreement with Pierce. We chose Pierce due to their team's experience in working with large corporates and major retailers across Asia. Their leadership team have a track record of corporate deal making in the complex Asian market and an extensive regional network. We believe partnering with Pierce is an important step in accessing the large and growing Chinese and Hong Kong health market. We hope the combination of our strong science, growing global brands, and Pierce's local knowledge and expertise will help bring the benefits of SlimBiome® and LPLDL® to China's 350m obese and 290m patients with cardiovascular disease. We believe working with Pierce, and similar partners around the world, provides the best opportunity of increasing our global commercial reach and catering for the growing interest we are seeing in our products from partners worldwide."
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)||Tel: 020 7213 0880|
|Liam Murray / Jo Turner / Ludovico Lazzaretti|
|finnCap (Broker)||Tel: 020 7220 0500|
|Geoff Nash / Kate Bannatyne (Corporate Finance)|
|Camille Gochez (Corporate Broking)|
|goetzpartners securities Limited
||Tel: 0203 859 7725|
|Walbrook PR Ltd||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.
About Pierce - www.pierceesim.com
Founded in 2002, Pierce ESIM Pte Limited is an operating subsidiary of Pierce Group Asia Pte Limited and is headquartered in Singapore. Pierce ESIM is at the forefront of delivering to its partners and customers leading intellectual property solutions. With an Asia-Pacific focus, we bring innovative solutions to our customers and offer our own range of customisable white label products ready for distribution to wholesale customers and retail consumers.
Pierce's leadership team includes Mike McGeever, an experienced global business executive, growth specialist David Cronin, with 18 years' experience of Asia, Dave Battiston, a cross border partnership specialistwith significant relationships with large corporates, and Angela Low who has a deep understanding of local markets, being born and raised in South East Asia.
OptiBiotix Health secures significant exclusive licence agreement for OptiBiome
Stephen O'Hara | 01 Apr 2020