OptiBiotix Health extends existing agreement with Seed Health
(OPTI ) said its wholly-owned subsidiary, ProBiotix Health, has extended the territories of an original agreement for products containing its probiotic LPLDL®.
In May 2018, ProBiotix Health entered into a non-exclusive agreement with Seed Health to produce, promote, market, and commercialise products containing LP-LDL® in the USA.
At the time, OptiBiotix said the deal with Seed™, which operates as a microbial sciences company, was a ‘strategic step’ by the firm to access the US probiotic supplement market which is considered one of the largest and fastest growing probiotic markets in the world.
Seed™ (seed.com) was co-founded by Raja Dhir and Ara Katz to pioneer the development of next-generation probiotic and live biotherapeutic applications and recently closed a $40 million Series A funding round to fund new category launches and international expansion.
The new deal will extend the existing territories from the USA, to include the countries within Europe, Oceania (e.g. Australia, New Zealand etc), as well as Asia (excluding India).
Under the terms of the deal, Seed Health will supply LPLDL® in its DS-01 product, which is a multi-strain synbiotic product which contains OptiBiotix's Lactobacillus plantarum LPLDL®.
Seed’s DS-O1 product, a broad-spectrum multi-species, multi-strain probiotic, received US FDA authorisation for an Investigational New Drug in October 2020 for IBS applications.
Shares in OptiBiotix Health have increased by over 10% in value since the beginning of 2021. The stock was trading flat at 53.5p this morning following the announcement.
The regulatory acceptance initiated a Phase II clinical trial to investigate the role of the gut microbiome in patients with Irritable Bowel Syndrome (IBS), and the impact of DS-01™ on both intestinal cells and metabolic output of the native intestinal microbial communities.
OptiBiotix said the extension supports Seed™’s expansion plans for DS-01 and is ‘another example’ of its partners either extending their product range (e.g. Optipharm, Holland and Barrett) or, as in this case, taking existing products into new territories, the firm explained.
As well as contributing to its recurring revenue, the Group said the extension demonstrates the effectiveness of its strategy of diversifying routes to market through partnership deals.
Addressing shareholders, Stephen O'Hara, Chief Executive Officer of OptiBiotix, commented: "We are pleased to strengthen our already strong relationship with Seed Health by agreeing this territory expansion for DS-01 to support their ambitious growth plans.”
This is another example of OptiBiotix's partners extending their product range or expanding existing products into new territories. This helps to grow the existing recurring revenue base and provides a solid foundation on which to build a valuable and sustainable business."
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