Business
European agreement with Sacco Srl
European agreement with Sacco Srl.
About this update from Optibiotix Health Plc
[{"type":"text","content":"\n \nRNS Number : 7896Y OptiBiotix Health PLC 08 March 2017 \n \n\nOptiBiotix Health plc\n(\"OptiBiotix\" or the \"Company\")\n \nEuropean manufacturing, supply and profit sharing agreement\n \nOptiBiotix Health plc (AIM: OPTI), a life sciences business developing compounds to tackle obesity, high cholesterol,\ndiabetes and skin care, announces that it has entered into a manufacturing and supply agreement with Sacco S.r.l., (\"Sacco\"). The agreement grants Sacco an exclusive licence to manufacture and supply OptiBiotix's cholesterol reducing strain, LPLDL®, in Europe in return for 50% of the profit with a minimum price per kilogramme to secure against discounting. \n \nSacco, founded in 1934, is one of Europe's leading probiotic manufacturers and supplies raw ingredients, including some of the world's best selling probiotic strains, to over 2,500 businesses across Europe. Under the terms of the agreement, Sacco will promote and expand the supply of LPLDL® throughout Europe on the maximum possible scale bringing it to the attention of as many buyers as possible.\n \nLPLDL® will be supplied by Sacco as a raw ingredient to food, beverage, consumer healthcare and pharmaceutical partners to be incorporated into a wide range of final formulations and presentations. These will be subject to separate license agreements creating the opportunity for multiple revenue streams at different points in the value chain arising from:-\n \n· Profit share of the sale of the strain as an ingredient by Sacco\n· Royalties from the sale of higher value white label formulations, and branded products from consumer healthcare and pharmaceutical partners\n \nThis agreement is the first step in a business to business (B2B) strategy of bringing OptiBiotix's science together with partner's brand portfolio and market reach to serve consumer healthcare and pharmaceutical markets around the world.\n \nStephen O'Hara, CEO of OptiBiotix, commented: \"We are pleased to announce the signing of a manufacturing, supply, and profit sharing agreement with Sacco, one of Europe's leading suppliers of probiotics ingredients. We chose Sacco due to their industry reputation, extensive ...