TIDMOPTI
RNS Number : 9233R
OptiBiotix Health PLC
01 November 2023
Opti B i otix Health plc
( "Opti Bi o t ix" or the "Company")
Commercial update
OptiBi otix Health p lc (AI M : OPTI), a life sciences busi ness
d e vel o ping co m p o u n ds to tack le o besit y, high choleste
r ol, diabetes and skincare, provides an update on commercial
activities.
The Company's focus for 2023 has been on achieving profitability
on a per business unit basis and, once achieved ultimately
resulting in overall profitability. This is being driven by a
reduction in costs, a focus on existing partners returning to
forecast, bringing in new partners particularly in the USA and
Asia, and building an e-commerce business through multiple channels
to reduce partner dependency. This update seeks to capture the
progress made with first generation products since the
restructuring of the management team in March in each of these
areas. An update on second generation products will be provided
separately in due course.
Existing partners returning to forecast
Whilst the retail environment remains volatile, we are seeing
sales with existing partners improve month on month with more
active account management leading to increases in sales across a
number of key accounts. We have seen an increase in both the number
of Apollo stores selling products in India and sales increase month
on month with September 2023 sales up 624% from launch in September
2022 and the highest monthly sales to date. Apollo have reported an
87% repeat purchase rate with 27% new customers coming into their
stores to buy GoFigure products. We are experiencing similar sales
growth with Nahdi Medical pharmacies in Saudi Arabia with a 219%
increase in sales since launch in March 2023 with September 2023
again the highest monthly sales to date. As the Company increases
its online presence with Amazon in each of these territories with
increased marketing, we anticipate enhanced brand awareness and a
further improvement in sales growth both in store and online. Sales
with Holland and Barrett and THG are also improving. As widely
reported in the international press THG's Myprotein is undergoing a
global rebrand of their products. We have been working with them to
create greater product differentiation of their LeanBiome (R)
containing products and new products to add to their new product
ranges.
New partners
The strategy in 2023 was shifting the focus from Europe to large
partners in key strategic markets, particularly the USA and Asia.
This broadens the partner base and reduces revenue dependency on a
small number of partners whilst accessing larger markets with
substantially higher sales volumes. Strong progress has been made
with: -
-- A large initial order of GBP116k from a leading weight
management and sports nutrition brand in the USA. We anticipate
launch in late 2023 or Q1 2024. This is a major sports nutrition
brand who are making a significant investment in LeanBiome(R) as a
key differentiator in the protein market and, if successful on
launch, will have a material impact on future revenues
-- Four new partners in Asia for SlimBiome (R) who have all
placed early orders. We anticipate this group of partners will
contribute around GBP150k in revenue in 2024
-- One of our partners securing an international listing for
products containing SlimBiome (R) with Costco, the fifth largest
retailer in the world and Boots online launching SlimBiome(R)
products in Q1 2024. Listings with large retail partners are
extremely difficult to forecast until a trading history is
established. However, these partners have significant scale and if
successful these agreements have potential for high revenue
return
-- Ongoing discussions with a very large US corporate on
launching OptiBiotix's own brand products in H2 2024. The initial
launch will take place in Asia with a global launch to follow. An
audit of OptiBiotix's manufacturing sites is currently taking
place
-- Ongoing discussion with a publically listed large
pharmaceutical company in India for a launch of SlimBiome(R)
containing products in India in Q2 2024 with forecast sales for
OptiBiotix in Y1 of GBP1.2m and Y5 of GBP6.7m
We are extremely pleased to report the progress made since March
2023 in attracting a significant number of new partners from the
USA and Asia, but also in the UK with Boots online. The key now is
active account management to ensure partners invest in actively
marketing and distributing OptiBiotix's products. We believe the
progress made and lessons learnt in rapidly improving sales from
existing partners, particularly Apollo and Nahdi Medical, increases
the chance of success with these new partners.
Ecommerce
Shiraz Butt joined OptiBiotix in May 2022 as E-commerce director
to help move the online shop from a shop window developed to
attract B2B partners to a profitable ecommerce consumer health
business. This was part of a strategy of moving from ingredient
sales to the sale of finished own brand products and growing our
online presence internationally to increase margins and reduce
partner dependency. The initial focus was on improving the website,
customer checkout and logistics to increase the conversion rate of
customers visiting the Company online store. The Company has a very
high customer return rate for its products so downstream conversion
of customers viewing its products online has potential for high
return. Once this was achieved, the focus moved to opening up of
new online channels such as Amazon, Amazon Prime, Walmart, and
Tmall and TikTok in China and more recently eBay.
Slimbiome(R) Medical is consistently in the top best sellers for
anti-appetite-suppressant products and achieved its highest sales
in online history during Prime month in July 2023 of just over
GBP13k. This trend was also seen with our gummies on Tmall and
TikTok where we sold over GBP15k of gummies in October 2023 in one
week following an influencer campaign on TikTok. Our partner in
China, Inready, have forecast sales of between 1,000-2,000 pouches
per week for 2024 which, if achieved, would bring in revenues of
GBP10k to GBP20k per week for gummy sales alone in China. We
believe with continued investment in marketing, the development of
new online sales channels (e.g eBay), and new product lines (e.g
soups, porridge, and chocolate bars), the online consumer health
business will continue to grow and become a significant contributor
to revenues in 2023 and beyond.
Stephen O'Hara, CEO of OptiBiotix Health plc said: "We are
making good progress with commercialising first generation products
since the restructuring of the management team in March, with more
active account management supporting existing partners returning to
forecast, more focused commercial discussions leading to a
significant number of new partners looking to use LeanBiome(R) and
Slimbiome(R), and growing online sales across multiple channels. We
are particularly pleased with the pipeline of high-quality partners
and the high conversion rate of interest to new accounts and the
progress we are making with online sales, particularly in China.
These all have the potential to bring in significant future
revenues.
"In addition to growing interest in our products the Company has
no debt, a strong balance sheet, second generation products close
to commercialisation, and retains significant exposure to the
considerable growth potential of the microbiome through its
shareholdings in ProBiotix Health plc and SkinBioTherapeutics
plc."
This announcement contains information which, prior to its
disclosure, was considered inside information for the purposes of
the UK Market Abuse Regulation and the Directors of the Company are
responsible for the release of this announcement.
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.
For further information, please contact:
OptiBiotix Health plc www.optibiotix.com
Neil Davidson, Chairman Contact via Walbrook below
Stephen O'Hara, Chief Executive
Cairn Financial Advisers LLP (NOMAD) Tel: 020 7213 0880
Liam Murray / Jo Turner / Ludovico Lazzaretti
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.
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END
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(END) Dow Jones Newswires
November 01, 2023 03:00 ET (07:00 GMT)
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