Extension of terms for OptiBiome® with OptiPharm
OptiBiotix Health plc (AIM: OPTI), a life sciences business developing compounds to tackle obesity, high cholesterol, diabetes and skin care, announces it has extended the terms of its original exclusive licence agreement for OptiBiome® with OptiPharm Pty Ltd as announced on 31 March 2020.
Today's announcement follows on from similar extensions to existing partner contracts we have already seen in recent weeks which should demonstrate significant interest in a new product that has already been costed in prior years and thus a free carry to OptiBiotix.
Given we are told, OptiPharma's original agreement is expected to be worth around 10 times the revenues of Holland & Barratts Slimbiome (which is flying off the shelves) it would be useful to know what the sales figures are for H&B partnership. The last update on actual figures was for a total 120,000 boxes shipped in February.
Recent extensions include;
Australian company Maxum Foods, which manufactures ingredients for the product range from the manufacturing and distribution of SlimBiome® and OptiBiome® to include WellBiome®. The territories remain unchanged with distribution rights in Australia and New-Zealand but as we can see, by today's agreement with fellow Australian's they get access to the same territories as Optipharm through its sales network, with the exception where other partners like Agropur, where it builds on the commercial launch of SlimBiome® and WellBiome® to the North American market as announced on 31 January 2020. It extends the product range from the manufacturing and distribution into territories such as the USA, Canada and Mexico.
The terms of the exclusive licence agreement signed in March 2020 granted OptiPharm exclusive use of the OptiBiome® trademark in Australia, parts of Asia, New Zealand, Middle East, Gulf States and North America. The extension of terms now includes Europe. Market exclusivity remains linked to minimum order quantities.
CTC Holding BV also extended the product range from the distribution of SlimBiome®, SlimBiome® Medical and GoFigure® to include WellBiome®. The territories remain unchanged with distribution rights in the Philippines, Vietnam, Indonesia, Colombia, the Dominican Republic and Guatemala. The agreement is for an initial period of 18 months from January 2020 with the renewal of terms linked to sales targets.
These agreements are all due to the response to commercial partners expressing strong interest in a microbiome modulating ingredient that would expand the commercial opportunity beyond slimming and provide a science-based solution to the Health & Wellness industry was estimated to be worth US$4.2 trillion in 2019 with the digestive health segment accounting for US$60 billion. Moreover, an estimate from Global Market Insights said the global prebiotics market will reach US$7.2 billion by 2024, a significant increase from 2016 when the market value was US$3.4 billion.
These pods of jam are just getting bigger and sweeter!
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OptiPharm is a privately owned Australian company and has currently been operating for 24 years.OptiPharm specialises in weight management, nutrition and infant formula, and their products are produced in the state of the art Australian manufacturing facilities that are GMP qualified and HACCP certified.
OptiPharm's flagship brand, Optislim, is the #1 Australian weight management brand incorporating shakes, soups and bars available as total (very low-calorie diet) or partial (low-calorie diet) meal replacements. Optislim is used by consumers throughout Australia, New Zealand, China, shortly the Middle East and the UAE, and is poised for release throughout South East Asia, North America and Europe. Their company-owned trademarked brands include:
· Optislim™ - (weight management meal replacements, including shakes, chocolate bars & soups) www.optislim.com.au
· isustain™ - (nutritional meal replacements for Adults, Children & Diabetics) www.isustain.net.au
· OPTI GOLD™ - (infant formula) www.optigold.com.au
Garry McDonald, Managing Director of OptiPharm, commented: "We will shortly be releasing a new range of Optislim products which will include Optibiotix's patented ingredient for weight management and are delighted that Optibiotix has agreed to an extension of terms that provides unrestricted access to additional international markets."
Dr Fred Narbel, Managing Director of OptiBiotix's prebiotics division, commented: "We are very pleased to announce the extension of terms for OptiPharm as it strengthens the commercial relationship between both companies. It is also another important commercial step in bringing OptiBiotix's patented and award-winning, scientifically formulated functional ingredients to global markets with Australia's #1 weight management brand ."