Optibiotix ready for change to revenue producer
OPTIBIOTIX HEALTH, a Yorkshire life sciences business that tackles obesity, high cholesterol, diabetes and skin ailments, said it has made significant progress and is now ready to progress from a technology company to a revenue producer.
The York-based firm said it is delighted with the excellent reviews of GoFigure meal replacement products which contain its SlimBiome formulation, which supports weight loss while reducing food cravings.
The group has also signed some high profile contracts with the maker of Slimfast and also with Tata Chemicals with a view to selling its products in Asian markets.
Stephen O’Hara, CEO of OptiBiotix, said: “OptiBiotix has made significant progress in the last year in building the infrastructure and team to support the transition from a technology company, to a product company, with early revenues and a developing pipeline of products across all our platforms.
“It’s a transition from a company that’s technically based to one that is commercially focused.
“We had 11 patents last year and now we have 50. Last year we had eight trademarks and now we have 16.”
Analysts welcomed the news and Alex Pye at FinnCap said: “Significant commercial progress this year sees OptiBiotix developing from an R&D company into a product company with a wide suite of products across multiple potential indications.
“Considerable commercial development has been achieved since our initiation note in January which includes the upcoming LPLDL launch at Vitafoods next month.
“Net cash of £3.1m allows for further commercial progress in both 2017 and 2018, and we remain encouraged by management’s delivery on key commercial milestones to date.”
OptiBiotix said it is looking forward to the next phase in the company’s development as its science creates new products to prevent, manage, and treat many of today’s chronic lifestyle diseases.
The firm’s first product SlimB iome is a key ingredient in GoFigure meal replacement shakes and natural snack bars.
At the moment these are sold online and in specialised retail outlets such as pharmacies and Whole Foods Market Inc, a $15bn (£12bn) American supermarket chain that sells healthy foods.
Research shows that GoFigure customers can lose 2 to 3 lbs in weight per week.
“It’s progressing very well and it’s all been done without marketing,” said Mr O’Hara.
“The next phase is to move from online and pharmacies to larger stores and also overseas sales.”
SlimBiome operates in a market that has previously relied on low calorie, high sugar meal replacements that can leave dieters feeling hungry.
OptiBiotix believes SlimBiome offers huge advantages as it has been clinically proven to make people feel fuller for longer, to prevent snacking between meals and to control the variation in blood sugars, thereby modulat- ing the peaks and troughs after eating.
Elsewhere, the firm has developed its first product using OptiScreen – a bacterial strain that targets cholesterol reduction. The strain is branded LPLDL.
Human studies have shown no safety issues and high levels of both cholesterol and blood pressure reduction.
OptiBiotix said it is working with a wide range of partners, which have the necessary supporting manufacturing, distribution and sales infrastructure, to support a product launch next month.
The group announced 2016 results in line with expectations with early revenues of £300,000 and an adjusted loss before tax of £1.2m. Mr O’Hara said that OptiBiotix is forecast to become profitable in the second half of 2018.