Share price has slimmed down a little – but OptiBiotix’s profile is set to expand
IN 2015, OptiBiotix Health was a darling of the market. Midas tipped the shares in July at 33½p and by the end of the year, they were 77½p. Since then, the performance has been pedestrian and today the stock is 67p, having drifted for most of 2016.
Investors may feel impatient, but now is not the time to sell. OptiBiotix is focused on an area that is increasingly recognised as playing a fundamental role in our health and wellbeing, the business is expected to expand considerably over the next two to three years and the shares should respond accordingly.
Chief executive Stephen O’Hara is an expert on the human microbiome, the trillions of microorganisms that populate the body. These affect us in numerous ways, contributing to conditions such as obesity, eczema and even heart disease.
OptiBiotix has screened and selected a variety of microorganisms to produce products in four areas: weight management, cholesterol reduction, sugar substitutes and skin issues, including the superbug MRSA.
The weight management product, GoFigure, was launched online in July and comes as snack bars and shakes. Early users have been enthusiastic, steadily losing weight every week. US health food giant Whole Foods also stocks the range and other retailers are likely to follow.
O’Hara is at an advanced stage with the cholesterollowering compounds, which will be available either as capsules or in food, such as yogurt. A deal has been agreed with a US consumer company and more contracts are expected with manufacturers and distributors. Millions of people take statins to reduce their cholesterol, but the OptiBiotix products are thought to have fewer side-effects.
The sugar substitute is exciting, too. Entirely natural, it is effectively a fibre that the body cannot digest, so it is almost as sweet as sugar but has no calories. Consumer tests have been positive, but work is ongoing to make the product even better.
Meanwhile, talks are under way w with a global sugar manufacturer to produce SweetBiotix.
The skin product is the most recent in the OptiBiotix stable, courtesy of a joint venture with Manchester University. Studies have shown that certain microbes can alter the texture and pliancy of skin, making it look and feel younger.
The group is also working on a compound that can kill the MRSA bug and stop it re-attacking the elderly and frail. Clinical tests are scheduled for next year, but results in the lab are promising.
O’Hara is a microbiologist by background and spent 20 years in the NHS. However, he is an entrepreneur by temperament and is determined to make OptiBiotix a long-term success.
Midas verdict: OptiBiotix shares have had a poor 2016 but should gain ground as more commercial agreements materialise. Interest in the microbiome is increasing rapidly in the medical profession and food industry, and OptiBiotix is at the centre of this field. Current investors should hold. Others may find the shares appealing.