RNS & Investor News

Manufacturing agreement with KAG Industries

30 April 2024

Supply of Slimbiome® in India as a finished product

OptiBiotix Health plc (AIM: OPTI), a life sciences business developing compounds to tackle obesity, high cholesterol, diabetes and skincare, announces that its wholly owned Indian subsidiary, OptiBiotix Health India Private Limited (“OHI”), has signed a manufacturing agreement with KAG Industries (“KAG”) for the supply of Slimbiome® containing products ready for sale. KAG have developed five flavours unique to the Indian market which will be sold by OHI to Dr Morepen, a well-known brand in India, launched in 2001 to encourage customers to be in charge of their own health and wellbeing.   

KAG is a specialised contract manufacturer of nutritional powders with its own research and development laboratories allowing it to create customised finished products for its clients. These include well known international companies like Unilever and well known and trusted Indian brands like Apollo and Dr Morepen. These clients require a high level of food industry accreditation including HACCP, GMP, FSSC 22000 certification. Zeon Lifesciences Ltd will manufacture and supply the SlimBiome® in Dr Morepen products, creating a local manufacturing and sales base for ingredient and finished product.  This would not be possible without having a physical presence in India.

With a population of 1.4 billion people and obesity prevalence at 40.3% (https://journals.sagepub.com/doi/full/10.1177/0972753120987465), India is a market of strategic importance to OptiBiotix. The middle-class population in India is expected to reach 475 million by 2030. Currently most middle-class consumers live in the European Union (EU) and the United States, but over the next decade, the majority will shift heavily toward India, with one in four  global middle-class consumers expected to reside in India by 2035 (https://www.asianstudies.org/publications/eaa/archives/the-middle-class-in-india-from-1947-to-the-present-and-beyond/) representing a significant growth opportunity.

The appointment of KAG brings another well respected and established provider into the supply chain within India.

Stephen O’Hara, CEO of OptiBiotix, commented: “We are pleased to announce this agreement with KAG to support the launch of SlimBiome® containing products with Dr Morepen, a well-known and trusted supplier to pharmacies, physicians, and retail customers across India.  We look forward to the upcoming launch of products across India with Dr Morepen and our manufacturing partners.”

Anuj Agarwal, Chairman & Managing Director of KAG Industries, commented: Dr Morepen boasts a rich legacy of over three decades, renowned for its expertise in developing reliable health products tailored for the Indian market. The collaboration between KAG, OHI and Dr Morepen signifies a promising endeavour, aiming to create mutually beneficial outcomes for all involved parties.”

The Directors of the Company are responsible for the release of this announcement.

For further information, please contact:

OptiBiotix Health plc www.optibiotix.com
Neil Davidson, Chairman Contact via Walbrook below
Stephen O'Hara, Chief Executive  
Peterhouse Capital Limited (Broker) Tel: 020 7220 9797
Duncan Vasey / Lucy Williams  
Walbrook PR Ltd Mob: 07876 741 001
Anna Dunphy  


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 Company's current areas of focus include obesity, cardiovascular health, and diabetes. 

Forward-Looking Statements

Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Company's current expectations, estimates, and projections about its industry; its beliefs; and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Company's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The Company cautions security holders and prospective security holders not to place undue reliance on these forward-looking statements, which reflect the view of the Company only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.

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