Optibiotix Health Share Discussion Threads

[shrewdmole] 11/2/2019 07:33

Toyin

I saw that!

Chinese market being hit with lpldl in products.

Appears to be introduced to infant food too!

How many other products and soft test launches are there....

Like I keep saying we only know the half of it.

S

[belgrano2] 11/2/2019 07:31

that's like saying "guaranteed income". Straight to the btm line. Further de-risks this share, they clearly are confident. Just what we like to see first thing on a Monday morning.

[toyin] 11/2/2019 07:31

Parob, elrico found a link to a company selling in China yesterday have a look on his blog.

[shrewdmole] 11/2/2019 07:28

Largest single country market within the largest area market in the world.

Food and dairy and minimum targets.

Probiotics are seen as everyday foods in Japan. No time lag as the public do not need educating on the benefits.

Wonder what’s next?

[shrewdmole] 11/2/2019 07:26

Dairy keeps being mentioned so as said earlier we could see a raft of new applications as it’s introduced to dairy products.

[nobbygnome] 11/2/2019 07:25

I like the 'increasing mininimum annual volumes in order to maximise the financial returns for both parties' part....

[parob] 11/2/2019 07:21

Sacco doing an excellent job! This partnership appears to be through them. China next?hTTps://www.eiwa-trade.co.jp/products/lactic/

[trotterstrading] 11/2/2019 07:12

It's a biggie, much more like it ;0)

[aspex] 11/2/2019 07:10

Note the opportunity to cover not only supplements but also dairy and food!

[parob] 11/2/2019 07:08

Market exclusivity is linked to increasing minimum annual volumes in order to maximise the financial return for both parties providing some surety of income for OptiBiotix over the next three years.This agreement creates opportunities for EIWA to market LP(LDL) (R) for use as a FOOD and DAIRY ingredient as well as a food supplement.Second deal in Feb already and we are only on the 11th! We must be getting close to the tipping point now.

[someuwin] 11/2/2019 07:05

OptiBiotix Health plc
("OptiBiotix" or the "Company")

Distribution agreement for Lactobacillus plantarum LPLDL® in Japan

OptiBiotix Health plc (AIM: OPTI), a life sciences business developing compounds to tackle obesity, cardiovascular disease and diabetes, announces that its fully-owned subsidiary ProBiotix Health Ltd., has appointed EIWA Trading Co. Ltd. ("EIWA") as its exclusive distributor for LPLDL® in Japan.

The agreement grants EIWA the exclusive rights to import, market and distribute OptiBiotix's cholesterol and blood pressure-reducing probiotic strain Lactobacillus plantarum LPLDL® in Japan for a period of three years. Market exclusivity is linked to increasing minimum annual volumes in order to maximise the financial return for both parties providing some surety of income for OptiBiotix over the next three years.

Based in Japan, EIWA was founded in 1963 as a distributor of food ingredients and flavours. It started its operations in functional ingredients 25 years ago and has been a major player in probiotics distribution in the country for the last ten years, servicing both food, dairy and food supplements companies. This agreement creates opportunities for EIWA to market LPLDL® for use as a food and dairy ingredient as well as a food supplement.

Asia-Pacific is currently the main market for probiotics (Euromonitor, 2018), and Japan accounts for 45% of it. In Japan, dairy probiotic applications are culturally very well established and their market is forecasted to grow with a sizeable CAGR of 14% until 2023. Probiotic food supplements have been gaining significant momentum over the last number of years and their market growth rates are expected to outpace those of dairy probiotic products in the abovementioned period (Research and Markets, 2018).

Stephen O'Hara, CEO of OptiBiotix, commented: "We are pleased to announce this distribution agreement with EIWA. This deal provides OptiBiotix market access in Japan, the main national market for probiotics within the largest region for probiotics in the world. We have chosen EIWA as they are a well-known and respected provider of probiotics to the Japanese food, dairy and supplement industries, creating the potential to extend the use of LPLDL® beyond supplements in a major international market. This agreement is another step in OptiBiotix's strategy of building revenues and market presence of LPLDL® as the 'Intel' inside a wide range of food, dairy and supplement products around the world. We believe working with EIWA and similar partners around the world will provide the best opportunity of rapidly building LPLDL® into a valuable global brand."

[nobbygnome] 10/2/2019 23:14

Yet some people still can't see the potential and just whinge about the lack of visibility on earnings. I repeat, the best company I have ever seen...

[riskybusiness1] 10/2/2019 20:41

Capsa are a big dairy player in Spain (€700m+ turnover) and seen as 'a company that innovates in the market with new formats and new products with functional benefits'. https://www.capsafood.com/capsa-food-profit-growa-118-exceed-15-millone-euros/LPLDL currently getting rolled out in the supplement market rapidly. Dairy is an even larger market and will drive massive growth for Probiotix. This is in the pipeline via Sacco but so far untapped. Expect deals all over the place to come in the dairy market... someone has already posted a Chinese company looking to put LPLDL in China. Literally sitting on a gold mine & that's just one technology platform.

[parob] 10/2/2019 18:11

The Business Development Director at Zeon Lifesciences used the metro article to promote SlimBiome on his LinkedIn profile.

[shrewdmole] 10/2/2019 18:02

Risky

It also has the ability to open up the business to new pi’s.

S

[riskybusiness1] 10/2/2019 17:43

John - probably cost a few thousand to get in the Metro, likewise for Daily mail & Telegraph that are currently pending. This will not make much of a material difference to the overall costs to Opti. It will however be worth the increase in activity & sales in Opti online platform and bring awareness to the company & its products. Opti online had a record sales day following the Metro. Though this is the smallest aspect of Optis model (expected to deliver circa less than 10% of group revenues) it has potential to deliver reasonable returns in the near term.

[parob] 10/2/2019 15:52

Dragonfly doji on the candlestick chart on Friday suggests reversal from 2 week downtrend. 82p offered an excellent entry price imo.

[shrewdmole] 10/2/2019 15:49

John

We don’t know but we do know soh is the biggest private shareholder and that’s huge for me so if they are spending money they must have seen a cost value benefit from the metro advert.

S

[2350220] 10/2/2019 15:02

Great posts Risky & Shrewdy.
Am I right to expect that we will have additional costs this year, for advertising?
If so, it's money well spent IMHO.
John

[riskybusiness1] 10/2/2019 14:26

Why does it matter when they have produced their accounts so far? To this point it's just been the control on costs that has been of main importance. Slimbiome & LPLDL were launched in May 2017. This was commercially launched meaning the product concepts had been proven and thus now available for companies via Optis b2b model to commercialise the product. It began with signing manufacturers in the major markets usually on a 50/50 profit share. From there the manufacturers would introduce Opti to their own partners & Opti could discuss with other partners after now being in a position to supply the raw ingredient. After this Opti start doing deals further down the supply chain. These companies will either be launching a completely new product around the ingredient, adding it to an existing product or taking on one of Optis own brand formulations and either branding it themselves or using an own brand like Cholbiome for example. Because of the IP, companies can buy from manufacturers like Sacco but if they productise it in anyway Opti will demand a separate higher value agreement. They are building this across the major markets of the world.Depending on the type of deal, size of partner & opportunity etc depends on how long these agreements turn to hard cash. As SOH has stated the early contracts are now starting to flow. These revenues will build, more of existing deals will launch producing revenues (many much larger), other platforms will launch products & the deal flow is continuously expanding across the divisions in multiple applications & territories.Projections with accuracy are not physically possible until the majority of existing partnerships have a reliable trading history with Opti. SOH will have an idea but he's not going to put his reputation & that of his company on the line. Say for example a company tells Opti they expect to sell £1m but actually sell £100ks worth but SOH put out a projection based on what this client expected. Trust in the market will be gone completely and the price will collapse. Instead SOH is testing the clients out to see if they perform, if they don't they can be easily replaced. Then following probably a year of solid trading data from the vast majority of existing deals a forecast can be produced on the back of real numbers and not third party expectations. SOH has outlined partner size & expected revenues from these deals once they launch & have time to grow. He's virtually said we can do the math, even at worst case growth from existing deals looks decent. Guys there is like 30 agreements, say each one produces £100k that's £3m from existing deals on an absolute worse case. We know some of these deals will be £1m+ alone so you can get an idea on what to expect over the coming years.SOH has said there will be a trading statement therefore I fully trust he will deliver. It will herald a major milestone in the company's history as the commercial transition visibly unfolds. It will be from this point the pace of which these numbers grow will be of importance to us investors looking at the accounts. Revenues will be coming through from earlier agreements leaving the market able to see significant growth opportunity as launches of new products in new territories snowball on a tiny & virtually fixed cost base.

[shrewdmole] 10/2/2019 10:10

Risky and a couple of others are far more eloquent than me but just scratching the surface and for arguments sake alone...

We know there’s a high street pharmacy at the table
We know several supermarkets are at the table.
We know tata ha e spent millions on new facilities and I believe is it Sacco that have done the same?

We’ve got lpldl to come in dairy, we’ve got Chinese trial launches, seed is flying out the door.

There’s the US pharma spending millions to gain pharma acceptance and paying milestone payments and we have several discussions going on re sweetbiotix.
We understand the global wants too much geographical and product exclusivety?!

So from soh last interview supermarkets could be one with go figure one with own brand and one using slimbiome in other products.

I for one am not put off by deals abroad rather than here.

Very interesting article stated the developed world was it its peak of consumerism last year.

The big boys like vodaphone, apple and drinks manufacturers are all targeting growing economies.

Seems soh has hit countries with a scientific need due to obesity and death rates and each partner is a key performer if your prepared to research them. Just because they aren’t a uk household name doesn’t mean a thing. In their market sector and geographic location he has gone for prime players as partners.

I still also say we can only discuss what we know but wihnopti you can guarantee there will be things going on we don’t know about....new strains, new markets etc.

Shrewdie

[plasybryn] 10/2/2019 10:06

Thanks - could I set those projections?

[slartybartfaster] 10/2/2019 09:49

Plasy, how do you estimate revenues from new products in new markets with any degree of accuracy? Don't misunderstand me, i once argued as you do. I have since had it explained to be this way. Regulators will treat forecasts badly if they fall short by 20% resulting in a profit warning, which often happen in 3s. How long would it take to return trust? Also, we have had guidance, just not in an Rns. We have been told revenues are growing 5 to 6 times and increasing. Via elrico we have estimated size of each company and estimated baseline revenues. These have been agreed by Soh.

[parob] 10/2/2019 09:34

USA population: 327MUK: 66MCanada: 37MAustralia: 25MSo Seed's target market will increase by about 39% once they start international shipping.