OptiBiotix Health plc (LON:OPTI) has signed a supply deal covering New Zealand and Australia with Pharmabiota.
The New Zealand-based firm, which has a growing retail pharmacy partner network throughout New Zealand and Australia, has committed to an initial purchases of 10,000 boxes each of three different products from OptiBiotix, each of which contains the company’s LPLDL technology, which is designed to reduce “bad” cholesterol.
OptiBiotix said the agreement would initially provide moderate levels of income, rising to six figures in the second year.
Pharmabiota has committed to growing orders by 10%.
READ Supply agreement with HLH Biopharma suggests strong demand for OptiBiotix's anti-cholesterol technology
Pharmabiota is not the first distributor to show an interest in OptiBiotix’s technology, but it is the first one outside Europe.
“We see this as another step in the company’s strategy of building multiple revenue streams from LPLDL ingredient supply (from our profit share with Sacco), and as a component in high-value white-label and branded formulations, across a range of national pharmacy and large consumer health international partners,” said Stephen O’Hara, the chief executive officer of OptiBiotix.
“This is a low risk, low cost approach, to accessing multiple consumer healthcare and pharmaceutical markets around the world. We are at the start of the commercialisation process but are really excited at the high level of interest in our products and the prospect of building multiple revenue streams, which if this strategy is successful, have the potential to cumulatively generate substantive seven figure revenues in the forthcoming years,” he added.
House broker finnCap said minimum purchase orders of 30,000 units signal a significant step in the company’s strategy of expanding the global supply of LPLDL, and builds upon similar agreements within the European Union.
The broker’s forecasts are under review until it gets revenue clarification, but it said it is encouraged by the momentum that appears to be growing in terms of multiple revenue streams for OptiBiotix.
The broker expects OptiBiotix to announce similar agreements in the coming months with national pharmacies and large global consumer health partners.
Shares in OptiBiotix were down 0.2% in mid-morning trading.
