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SweetBiotix sweet fibres agreement
15 September 2020
Manufacture and commercialisation deal signed with US company
OptiBiotix Health plc (AIM:OPTI), a life sciences business developing compounds to tackle obesity, high cholesterol and diabetes announces that it has entered into an agreement with a US company ("the US Company") for the purpose of large scale manufacture and commercialisation of a number of SweetBiotix® products.
The agreement grants the US Company an exclusive worldwide license in return for it bearing the costs relating to product manufacturing, marketing, and all future costs relating to the commercialisation of a number of SweetBiotix® products.
OptiBiotix will receive a modest six-figure payment from the Company on signing the agreement and at 12 monthly intervals until product launch. Additional similar payments will be due on product launch plus royalties on all future product sales. Enhanced royalty payments will be made to OptiBiotix on sale of SweetBiotix® products by the Company to 11 application/innovation partners with whom OptiBiotix has been in long term discussions regarding exploring the use of SweetBiotix® products in dairy, cereal and beverage applications.
The US Company requires its identity and certain commercial terms of the agreement to remain confidential to protect its commercial launch plans.
Stephen O'Hara, CEO of OptiBiotix, commented: "We are pleased to announce this agreement for SweetBiotix®, a family of products based on the concept of creating a sweet fibre with a low glycaemic index which enhances the microbiome. The agreement allows the US Company to invest in the large scale manufacture and commercialisation of a number of SweetBiotix® products in return for upfront, annual and product launch milestone payments, plus royalties on all future product sales.
"With concerns over the amount of sugar and lack of fibre in consumer diets creating high levels of diabetes and obesity, this agreement brings closer the prospect of replacing 'unhealthy' sugars with healthy sweet fibres which contain no calories and improving microbiome diversity and the benefits of SweetBiotix® technology to a global audience."
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)|
|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 programme 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 current areas of focus for the business include obesity, cardiovascular health, and diabetes.
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identiﬁed by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect", ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding OptiBiotix's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reﬂect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.
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