Optibiotix Health Share Discussion Threads

[scotty1] 26/4/2017 07:46

You certainly are rubberbullets,nice to see you are man enough to admit it.

[trotterstrading] 26/4/2017 07:46

We are in the right space, look at Probi's Mcap vs profit!!! They are on a P/E ratio of c.100! Just a mater of time, and they don't have sugar, skin etc!

[rubberbullets] 26/4/2017 07:45

Another pile of Junk

[trotterstrading] 26/4/2017 07:44

About 40 ppl mix of old faces and new

[parob] 26/4/2017 07:41

I'd say the room was 80% full. Some familiar faces from the last one at the same venue. I'm pretty sure SOH mentioned it was his fourth presentation of the day having presented to analysts and institutions earlier on.

[mouse20] 26/4/2017 07:36

Trotters, was the event well attended? Or do you think it was mostly the folks like us who already know the Opti story who are already invested.

[trotterstrading] 26/4/2017 07:28

You have to meet the man to understand he is very understated, it a BS merchant like so many CEO. The reason fincap won't give forecasts is because SoH is not comfortable providing them without 12 months sales history (providing seasonality view). In his words anything less would be 'guessing' and SoH doesn't do guess work, rest assured they have their own internal forecasts, which will be more bullish than any comments he provides during interviews. Under promise over deliver, a rare quality on the AIM

[judijudi] 26/4/2017 07:18

Thank you for the feedback to all who went and posted
Much appreciated

[monkeywench1] 26/4/2017 03:13

No ramping for over 3 hours. Tut tut. Someone has let the side down.

[lukead] 25/4/2017 23:56

There is a touch of realism from the Ironman, I bet the odd fella on the other thread like that post.

[ironman22] 25/4/2017 23:50

DP 'He (SOH) still thinks people don't yet realise the value here' SOH can think what he likes but the fact of the matter is the market will only value this company on 'potential' for so long which is exactly what it is valued on right now. It doesn't matter how fancy your product is, how much IP you have or how many patents you have if you can't sell it,and so far there hasn't been a whole lot of selling just promises of possible sales which is why the share price isn't moving further North and if SOH and his team don't start selling their wares in serious bulk and start generating value creating revenue pretty sharpish it'll be heading South very quickly.

[lukead] 25/4/2017 23:46

So as said earlier Fincap won't commit to a rating until they have some figures, it figures. Slow burner, iii say, it surely has been for 2016 and beyond, just needs the fuse to be lighted, for take off

[elrico] 25/4/2017 23:43

Lodger, Deepockets, Parob (apologies if I have missed anyone). Thank you all for making detailed notes and sharing them. There is some extremely encouraging info to digest. The level of news flow appears to building up behind a dam made of inferior concrete. It will burst, it's just a matter of time. The questions is....will you be sat on the bank rolling up your trousers or on the surfboard riding the wave of optimism?

[incanus] 25/4/2017 23:22

Thanks to all that shared info from todays agm. very much appreciated and very encouraging. there some great posters here.

[lukead] 25/4/2017 23:16

Quite, I would have been surprised if there wasn't, as they are presenting the new cholesterol products to the world. As I say at the recent show, he just had photos of the products (not the packaging, obviously) that we're going to be presented in May and on display on April 1st were just the shakes and bars that were already on sale.

[joyjoy13] 25/4/2017 23:13

Optibiotix (OPTI), the life sciences business whose shares have grown tenfold since floating on AIM almost three years ago, is moving into an exciting new phase of its development, according to boss Stephen O'Hara.

The company has grown exponentially so far from its IPO price of just 8p and started this month at an 11-month high of 90p. It has since pared back to 73p, though it ticked up modestly Tuesday following full-year results and the announcement of a pre-launch sale of 100,000 capsules of its LP-LDL product to Germany's HLH BioPharma.

In the financial year to 30 November 2016, Optibiotix grew revenues 10 times to £288,119, up from £28,200 in 2015. This was driven by the August launch of its SlimBiome in GoFigure cereals and shakes, which accounted for £80,000 of those sales.

LP-LDL is set to be launched next month at Vitafoods, the global nutraceutical event, and house broker finnCap says the German sale shows "market potential for cardiovascular health benefits".

April was significant due to progress at its skin division, which has now been spun off into its own AIM-listed company, SkinBiotherapeutics (SBTX). Opti took a 52% stake in SBTX a year ago for £250,000, with the firm now having a market cap of £15 million.

We reported this time last year that the numbers then were largely irrelevant – and that seems to be the case this year as well, with an adjusted pre-tax loss of £1.2 million.

The company is currently transitioning itself from being a technology-oriented to a product-oriented firm, and is moving out of the "partnering" phase and into the "commercialisation" phase, where people tend to move a lot quicker, O'Hara told Interactive Investor today.

"The next stage is the critical phase," he added. "Probably not the next 12 months, but the next 24-36 months is where we get our products on the market, get established and start building revenues from those products.

"Retail investors want you to have revenues of a million pounds and it just doesn't work like that. It's about building things up properly – and if it was a million pounds then I'd be concerned because it just doesn't stack up in terms of the way things work."



And, clearly, O'Hara has a track record of building new businesses up, having set up an eBay-style internet auction house at the height of the dotcom boom before founding Acolyte Biomedica, which developed rapid diagnostics for healthcare-acquired infections like MRSA. Acolyte was sold on to 3M in 2007 for millions.

Opti's current high-profile partners include Slimfast; DSM, the world's biggest ingredients supplier; SACCO, the world's third-largest probiotics supplier; and Asia-focused Tata Chemicals. "[These are] all big names. To attract those names takes a lot of time and effort," says O'Hara. "It's about building the company now for the future."

A number of commercial deals are expected to be completed in the coming three months or so to further build up revenues, we're told.

FinnCap analyst Alex Pye says net cash of £3.1 million, with cash burn of £1.2 million per annum, should allow for further commercial progress in the next couple of years, and the broker "remains encouraged by management's delivery of key commercial milestones to date".

"Positive newsflow continues to indicate upside for OPTI and it is hopeful that management continue to deliver on scheduled key milestones and attract larger commercialisation deals going forward," he added.

Pye says it will not issue forecasts and price targets at this time, but will "once sales figures become clearer".

For reference, O'Hara points to companies with similar products to OPTI, in particular Chr. Hansen, a Danish bioscience firm, that acquired Valio's LGG probiotic strain for €73 million (£62 million) in September that generates revenue of around €9 million – "quite a good multiple", says O'Hara.

Swedish firm Probi, meanwhile, reported profits for 2015 of SEK63 million (£5.5 million) and has a market cap of around £424 million. "You can see that, if we can get this right, the way the market values companies in this arena is pretty good."

It may still be a slow burner, and periods above 90p have thus far been brief, but Optibiotix is an interesting business and remains one to monitor over the next few years.

[lodger] 25/4/2017 23:06

Lukead - I specifically asked if there was going to be physical product i.e. capsules etc at the show. The answer was yes.

[joyjoy13] 25/4/2017 22:51

Parting thought for tonight...

I will sleep well on hearing all this positive news today, thank you.

But.....
I bet my knickers in a twist thumbs down poster won't!
Do you think I care?
I think it's amusing!

[lukead] 25/4/2017 22:50

1st para of lodger's post, am I missing something , they are presenting at the show and so naturally they will have their products on display. When j was the investor show recently, he was showing the photos of the pills and capsules to be sold that were on someone's smart phone

[joyjoy13] 25/4/2017 22:36

Thank you everybody for your feedback, all sounds very positive, meeting SOH and the team plus the products & interested parties..
Thanks for taking the time out to update us on the meeting today, greatly appreciated.

[bobdown2] 25/4/2017 22:23

Thanks lodger..its nice to have a figure for the number of companies that we are in talks with.

[lodger] 25/4/2017 22:09

I think the others have conveyed most of the main things I noted, but I did get confirmation from Per that there will be physical product ready for show at Vitafoods. This is important for confidence that it can be made into a product.

Also, there are a range of sugars being tested, and the human trials this June/July will be testing the higher sweetness varieties. If these do not work out as planned then the lower sweetness (approx 65-70% I think) will still be viable for various markets. The higher sweetness just expands the range of potential markets.

We are in talks with >30 companies (small, medium, large), each of which could sign a deal. The smaller companies are quicker to do deals with and will get sales going, attracting the attention of larger companies.

Basically, things are going to plan, and I'm sleeping well tonight.

[f3rdinand] 25/4/2017 22:06

I get the Skin demerger as it was an additional division (picked up on the cheap) that required significant funds to develop it to its potential.The reasoning to spin out the other divisions is somewhat less obvious! The slim and cholesterol divisions seem to have massive margins and require next to no funding as our partners will develop the brand. So what do we get out of having our holding in each division massively diluted??

[parob] 25/4/2017 22:04

HLH will be launching a new product with LP-LDL inside, and will have marketing spend for it. Sacco already manufacturing. If I had more funds, I would be buying stacks more whilst we're in this dip!