Optibiotix Health Share Discussion Threads

[jestercat2] 01/11/2017 10:23

Thanks for the update John - sounds promising.

Questions for others - is the 'new formulation' mentioned in recent RNSs supposed to address the 'difficult mixing' issue that John mentions here?

[2350220] 01/11/2017 10:17

Morning all,
As it's been three weeks since I started Go Figure I wanted to update you.
Before I purchased the full pack, I phoned the HWLCo and spoke with Max.
I asked him if this would compliment the 5:2 Diet and he said "absolutely".

So what I've done is one day normal eating and one day Go Figure.
In that time I've also exercised a bit more and tried (not V successfully) to cut down my alcohol.
On the Plus side:
I'm happy with about 4lbs weight loss.
It hasn't been onerous or particularly difficult, as the plain 5:2 is.
Four of the five products taste great.
The snack bars are great to have in your pocket, as a just-in-case bar.
I'll probably order more of these.
The bars have about a three month life and the drinks sachets have over a year life.
My only Negatives are:
The vanilla drink is like Gloop.
But the other two are great.
All three drinks are not easy to mix.
I found that the only way to get them to mix properly, was to use a hand blender.

All in all a real positive experience, and like I said not onerous, or disruptive of our meal times.
John

[jestercat2] 01/11/2017 10:05

"The shares are a buy at up to 80p with a target of 100p+ to sell by Christmas."

Much as I agree with the overall sentiments expressed in his post. I do believe that this sort of comment from TW creates two enormous resistance points in the share price

Or perhaps I'm just overestimating his influence here.

[someuwin] 01/11/2017 09:53

HSR

"Optibiotix - another major deal, this time for Slimbiome: BUY, BUY , BUY

A big deal with a real name and a serious player which will lead to material profits for Optibiotix (LSE:OPTI). What more could we lucky shareholders want? These deals are racking up and will clearly leave the company reporting profits in 2019 and very big profits the year after. That is not discounted in the share price, currently 74p to buy.

The deal is with one one of the UK’s leading specialist ingredients suppliers, Knighton Foods which is a subsidiary of £326 million capitalised Premier Foods – a company that last year genewrated sales of £790 million so it is a very real company indeed. The agreement gives Knighton an exclusive licence to manufacture and supply OptiBiotix’s SlimBiome weight management technology in the United Kingdom, in return for 50% of the profit, with an agreed cost of manufacture and minimum sales price per kilogramme.

Knighton supplies a range of high quality, value adding, functional powdered foods, specialist ingredients and finished products, to some of the countries major supermarkets, high street coffee houses, and best-known household brands. Knighton’s advanced powder technology was key to developing an improved version of SlimBiome, providing enhanced solubility and better product presentation, greatly improving flavour and mouthfeel.

We are told that SlimBiome “will be supplied by Knighton as a specialised functional ingredient, into a wide range of finished products for use in the retail, vending, and ingredients sectors. Knighton will use their best endeavours to promote and expand the supply of SlimBiome®, bringing it to the attention of product innovation teams across their wide range of customers.”

We noted the other day that Optibiotix had in recent months signed 6 deals on LPLDL and that each could be worth £250,000-£500,000 in year one and rising thereafter. We speculated that another 4 LPLDL deals were likely in the next few months but that following that there would be similar numbers of deals for Slimbiome and then sugars. Well now you are seeing Optibiotix start to deliver on Slimbiome. This is just one territory albeit a big one and with a big partner.

We stated in our big report the other day that as these deals rack up there is no reason why profits by the 2019 calendar year could not be £4 or £5 million with the potential to double that the year after. Such growth would easily merit a PE of 20-25 and as folks wake up to all that implies the shares will re-rate big time. At 71p-74p the market cap is still just £57 million. Do the maths!

Note the Steve O Hara quote today: “We believe working with Knighton, and similar partners around the world, provides the best opportunity of meeting the requirements of major retailers and the growing interest we are seeing in SlimBiome® from partners worldwide”

Ends.

In other words there are a stack more deals to be announced soon.

The shares are a buy at up to 80p with a target of 100p+ to sell by Christmas."

[elrico] 01/11/2017 09:44

I had an exchange with Christina a little while ago, though she was obviously guarded for equally obvious reasons - nevertheless, her insight to the whole process and her involvement is fascinating.

"I have been very active putting the right foundations in place ready for a big commercial push in 2018, including working on applications, product development and process improvement with the right partners. As I am from a food manufacturing background, I know what is needed by retailers so had to put some ‘rigour’ into our process by introducing the necessary governance, traceability, trials and gate approval systems for best products/ingredients/manufacturers ready for listings. Our new improved SlimBiome is now ready and has opened up a lot of new opportunities and possibilities as we can include it in much wider range of products without affecting its functionality. All that takes time but it was well worth investing in it to get it right ready for commercialisation. We ran some trials today which were very successful and gave a much better end product than using the original SlimBiome as well as improving the mouthfeel and texture. Of course all of this has already been in a recent RNS but I will update it now we have the trials completed. There’s also a lot on GoFigure but I cannot go into detail until our next RNS."

It appears Max (GoFigure founder) has given us some excellent clues on the new product line front being readied for New Year.

"I know the investors all want to see quick returns but realistically, to get listed in any major retail outlet, there are only 2 range reviews per year and a product approval system to go through prior to getting products on the shelves. This can take many months as they want to check products, regulatory, store trials before finally giving the ‘green light'. There is also a lot of testing from our side to see how the products respond to different temperatures and humidities , (in the case of exporting) shelf life trials (how does the product degrade over time), micro’s testing (is there any danger of microbial growth over time) – all of which takes time and investment."

I am sure we will have the odd naysayer asking who are Knighton foods and put their spin on what 50/50 profit share actually means. To the first question...who can name a household name that manufactures ingredients...come on...Premier foods. Many of their clients are household names. The 50/50 profit shares is pretty much the same as the agreement with SACCO. SOH has put assurances in place on production costs and minimum price per kilo for the ingredients. This provided costs visibility, increases margins and of course prevents discounting.

The revenues stream works no differently to OptiScreens LP-LDL, typically, each product will create 3 revenue streams for OPTI.

SlimBiome/TATA production must be pretty close now, and I gather UK retailer push next year after delays this year due to H&B and Boots restructuring and strategic reviews. And OPTI e-commerce website must be closure with a new line of SlimBiome products, etc, which is expected to account for 10/12% of sales revenues, which seems ambitious to me when considering the level of sales the likes of TATA, HLH, PharamBiota and Galenicum will be expect to deliver (and those are just the ones we know have signed) once momentum gains traction. This suggests to me OPTI have a large selection of products at higher margins to them right through from production to retail sales.

I don't think we are at the inflection point just yet. However, I suspect one we have production news from TATA at LP-GOS and SlimBiome reality will dawn on the markets a little quicker and the naysayers will scurry off into obscurity thinking...if only, if only!

PS. I expect a similar agreement with CII to come....IMHO, nothing concrete or anything I have been told, it just makes sense given their importance to the US breakfast table.

[riskybusiness1] 01/11/2017 09:15

We now have manufacture in place across the three platforms which is obviously the precursor for any commercial company before it starts to rake in the 'jam'. Slimbiome with Knighton, LPLDL with Sacco and LPGOS with TATA. 2017 will be seen as the year production officially begins with Opti with visible revenues building for next year.It's important to realise these agreements are for the manufacturing of the ingredient (powder). It allows Opti to leverage Premier foods purchasing power. Clearly revues from final products will be the higher margin higher revenue streams. For example finished products such as Go figure or Tatas products. No doubt Knighton will have contacts to connect Opti with to envoporate slimbiome in to many other products.

[judijudi] 01/11/2017 09:02

Tipping point a tad closer

[owenmo] 01/11/2017 08:58

Then we have focus on Opti in US as weekend approaches. A promising November harvest in store I’d have said.

[nashwan123] 01/11/2017 08:58

I wonder what the 50% profit is? is it the weight of the ingredient used in each product or the value of each product sold? Say 5 grams could be used in a bar of X containing Opti's slim' valued at less than 3p (or whatever the value is) which would give Opt a 1.5p return. Basically without knowing the actual figures it seems to me that we need to sell hundreds of thousands of products to generate big returns.
I love the company and the world leading science, but don't understand the finances.

[loungeact] 01/11/2017 08:44

Tata released Tata NX earlier this year. I’m guessing it’ll have a range of products containing Slimbiome similar to the NX range. Just a guess of course. Interesting article though. —

[parob] 01/11/2017 08:35

Interesting that it's an exclusive license to manufacture and supply in the UK yet:'This is an important step to meet the needs of major UK retailers and exports of SlimBiome(R), and SlimBiome(R) containing products to TATA, and potential new partners, in the Iarge consumer markets of India and the USA.'Wonder if the Tata/Slimbiome deal/product launch(es) is just around the corner now?

[john henry] 01/11/2017 08:35

Market starting to wake up

[m4rtinu] 01/11/2017 08:32

Sounds a good idea to me too. Seems they have put controls in place to monitor deal.

"In return OptiBiotix will receive 50% of the profit. Also contained in the deal terms is an agreed cost of manufacture and minimum sales price per kilogramme."

If this does attract interest from other prospective partners, might OPTI be able to drive even more favourable deals in future?

MU

[riskybusiness1] 01/11/2017 08:27

Fits in nicely with what SOH was saying about getting ready for retailers. This is like the Sacco agreement where they pay for all the materials, manufacturing, labour etc and once the products sold Opti get half of the profit. Great deal and another partner that will promote the product. Big brands are manufactured at that site for Premier foods.

[judijudi] 01/11/2017 08:25

Fill yer boots
Get grubbing around the back of your sofa
Writings on the wall with this one
A slow burner at the moment, but burn it will

[malreid] 01/11/2017 08:17

I think the RNS should be read in conjunction with Max's email and then you get a feel for the full potential. This, IMHO is the biggest news to date and with the range of products available and PF need to maximise what is clearly a market commercial advantage it should be onwards and upwards from here GLA

[vanduke] 01/11/2017 08:12

Another brick in the wall

[rathean] 01/11/2017 08:03

After all of Tom W's ramping it looks like we might be ready to break north from this narrow range. Huge announcement today, sugar and weightloss tomorrow :)

[wreckage] 01/11/2017 08:02

Following on from this I will expect US manufacturers climbing over themselves to get a piece of this cake, sorry about the pun I just could not resist it.

Just watch.... RNS's will come thick and fast.

[deeppockets] 01/11/2017 08:01

Slimbiome in Mr Kiplings Cake! What's not to like! Just joking! So is this a way to get Slimbiome into several products already on the shelves rather than trying to get stores to stock Gofigure. Premier own several brands! Great deal!

[wreckage] 01/11/2017 07:59

Not only in the UK but impressively in USA

[rafboy] 01/11/2017 07:58

Massive news.