Optibiotix Health Share Discussion Threads

[riskybusiness1] 15/3/2019 12:19

Another interesting point from the RNS is 'The agreement restricts HLH from promoting and/or making sales, or exporting products outside these territories'This basically means they've reigned HLH in so you will not be able buy that product in the UK anymore. Arguably this isn't great for the consumer because Cholbiome is a few quid more expensive but commercially it's an excellent decision to build Cholbiome sales that will have a much higher unit sale price & therefore profit margin for Opti in the U.K. market.

[riskybusiness1] 15/3/2019 12:12

I think they plan to launch end of year/early next however they will order this financial year in order to get themselves launch ready. A company like Alfa Sigma your talking tons so £200k-£400k each order a number of times per year. They are a major player & a fantastic partner to have... looking at the VSL brand, sales in excess of tens of millions is very achievable through them.SEED health are looking like they will significantly ramp up sales into Asia which will be massive & why they are only selling to existing customers until they change manufacturing to suit that particular climate. Per said the majority of revenues were coming from US which must mean SEED and that Probiotix Health is already self sustaining so the pharma development milestones adding to 7 figures will add on top very nicely. Looks good

[rayrac] 15/3/2019 12:11

So what happened to the expected rns from the India trip?! More smoke and mirrors as usual.

Still no contracts for cash, just agreements to try Opti products in a highly competitive market. Boombod being just one example.

[slartybartfaster] 15/3/2019 11:37

I know. It was in 2 of TWs bearcasts last year.

[imnotlong] 15/3/2019 11:31

Risky, those figures look reasonable to me.

Have you any thoughts when Alfasigma products in Italy will go on sale? That can’t be too far away.

[belgrano2] 15/3/2019 11:17

Hi Risky, agree with your min figs, I read it as those figures are from Germany alone with the new countries being extra markets, hence additional income.

[riskybusiness1] 15/3/2019 10:42

Remember they were AB-Biotics distributor that dropped AB life ingredient & replaced it with LPLDL as soon as it became available. Now they want to extend the scope of the original agreement agreeing to double sales each year. They're pretty established business so £500k+ after this contract extension imo will be a realistic recurring figure from this one deal within the next few years.

[belgrano2] 15/3/2019 10:34

They were one of the first off the mark, always listed as a small company along with another 35 players, if the others emulate this performance we’ll be more than happy and SOH will be well short of the mark in company valuation.

[judijudi] 15/3/2019 10:17

Regular seller around again today I reckon
Silly Billy
:)

[shrewdmole] 15/3/2019 10:01

RAF

Well said.

Too much over analysis of every rns.

If you take a step back the fundamentals are that there’s lots of deals being done, the partners especially the latter deals are key players in their markets and there are multiple strains and products so not reliant on one thing.

There is just so much going on here I’m finding it hard to keep track.

For example I can’t believe nothing’s being discussed re improving LGG yet it’s at the back of everyone’s mind as since then we’ve had so much news.

The board are top drawer, costs are well managed and we have multiple strains in multiple countries in a sector that is the next step for healthcare and wellbeing.

Whether hlh do £20k or £200k this year to me doesn’t matter if the rate of growth they are committing to is doubling each year then the product has traction and sales are only going one way as word spreads.

So HLH have signed a deal doubling sales, seed are launching in further countries and continue to re order. The signs are there.

[belgrano2] 15/3/2019 09:57

Sounds about right TT, looking at comments from the original June 2017 rns, projections were mid to low 6 figs, so they have done well.

[nobbygnome] 15/3/2019 09:34

I don't know about everyone else but this sort of announcement reassures me about the rapid ramping up of sales in the near future. Yes this is only one partner in one country and some are going to be better than others at achieving sale stargets but nevertheless this shows what is possible.

As I may have said before, in my long investment experience this is the best company I have ever seen and anyone who can see beyond the end of their nose, should be able to realise this!

[riskybusiness1] 15/3/2019 09:18

I'd also add it is likely the £250k overall has been revised up on this deal after the 'doubling each year' clause.

[colinzeal] 15/3/2019 09:13

Spot on. Nice to see the existing deals and revenue streams starting to bring in even more value, too. Future looks very bright here imo.

[rafboy] 15/3/2019 09:09

Whatever the income it is to be welcomed and it is only one deal. It is the cumulative effect of all the deals that will propel OPTI and the share price

[riskybusiness1] 15/3/2019 08:57

'An exclusive license to produce, package and commercialise a customised capsular product containing OptiBiotix's cholesterol reducing LP(LDL) (R) strain in Germany with order volume commitments which double each year for the next three years to maintain exclusivity in this territory.'Doubling each year clearly shows they are very confident in selling the product & can see significant growth, think everyone can agree on that. I don't believe SOH range of £250k-£500k-£1m+ means this instantly in the first year it means that's sort of size deal building up to it.

[trotterstrading] 15/3/2019 08:53

I believe the target for the 1st year of this new deal is for a minimum of £250k, particularly as it's an EXCLUSIVE deal for Germany which is a large market

[belgrano2] 15/3/2019 08:52

Also they have come back to opti asking for permission to sell elsewhere. They have been selling long enough to gauge sales “rate of climb”, they know their business and recognise based on sales that they are onto a winner hence the early doors get back to the table and increase our sales territory request. Opti has granted them that subject the minimal annual doubling of home sales. You can bet they.ve been sharing actual sales data with opti to forge this sales extension, which opti are happy to accept.

[imnotlong] 15/3/2019 08:47

Was that £250k when contracts are fully embedded?
Do you think this contract contributed practically half of the £541k revenue for last year? I don’t. So I think the doubling targets are starting from a much lower base of income than £250k.

[trotterstrading] 15/3/2019 08:38

Based on SoH LOWEST indications contracts would generate 250k pa, doubling of Revs each year in that basis would generate 1m, now consider he has granted exclusivity in Germany, something which was NOT part of the original deal!

[belgrano2] 15/3/2019 08:37

These are minimal targets to keep exclusivity on contracts. The company clearly expects to easily exceed those expectations or they would not have agreed. I’m expecting even better progress.

[judijudi] 15/3/2019 08:34

white,
??
My comment had nothing to do with you!

[whitegold1] 15/3/2019 08:32

Judijudi ...i was being sarcastic!

[imnotlong] 15/3/2019 08:27

And I would imagine it’s nowhere near £1m by year three.

Interesting how we all take different views from the same words. That’s Optis’s RNS’s for you.

[manc10] 15/3/2019 08:19

in 2017 rns number 2319d hlh bought 100k units of lpldl