Business
Global manufacturing & supply agreement with Sacco
Global manufacturing & supply agreement with Sacco.
About this update from Optibiotix Health Plc
[{"type":"text","content":"\n \nRNS Number : 5822O OptiBiotix Health PLC 22 August 2017 \n\nOptiBiotix Health plc\n(\"OptiBiotix\" or \"the Company\")\nGlobal manufacturing and supply agreement with Sacco S.r.l.\nOptiBiotix Health plc (AIM: OPTI), a life sciences business developing compounds to tackle obesity, high cholesterol, diabetes and skin care announces that, further to the European manufacturing and supply agreement with Sacco S.r.l., (\"Sacco\") announced on 8 March 2017, the Company has entered into a new agreement to cover the USA and the Rest Of the World (\"ROW\").\n \nThe agreement grants Sacco an exclusive licence to manufacture and supply OptiBiotix's cholesterol and blood pressure reducing LPLDL® strain in the US and ROW, in return for 50% of the profit, with a guaranteed cost of manufacture and minimum sales price per kilogramme to secure against discounting. The agreement brings the following benefits:-\n1. Access to the US, the worlds largest probiotic market, with an estimated retail value of $7.1 billion per annum\n2. Extension of LPLDL® into dairy applications utilising Sacco's network in the dairy industry to develop commercial opportunities identified by them in the global $35.5 billion probiotic dairy market\n3. Economies of scale, significantly reducing the manufacturing cost of LPLDL®, increasing OptiBiotix's profitability, and opening up new application opportunities\n4. Long-term security of supply with Sacco's ability to produce at different locations from multiple facilities\n5. A commitment from Sacco to support the funding of further developments of LPLDL®, including marketing and human studies, to expand the commercialisation of LPLDL® into new markets\nThis agreement is a strategic step to access the US probiotic supplement market, and to extend the opportunities offered by LPLDL® into dairy applications, with one of the largest and internationally respected supplier of probiotic ingredients. The US is one of the largest and fastest growing probiotic markets in the world, with supplements alone accounting for $2.06 billion sales, with a projected 55% growth to $3.3 billion by 2021. Extension of LPLDL® into dairy applications widens the commercial opportunity by accessing the $35.5 billion probiotic dairy market.\n ...