The AIM-listed company, which develops a range of compounds to tackle obesity, high cholesterol, diabetes and skin care, said the agreement was with Akums Drugs and Pharmaceuticals Ltd, a leading contract manufacturer in India.
Under the terms of the agreement, Akums will manufacture and supply products containing OptiBiotix’s LPLDL strain throughout India to maximise financial return for both parties.
In return for exclusivity, the group said Akums would provide undisclosed and in-kind contributions and explore opportunities to utilise LPLDL with OptiBiotix therapeutics in India, including any required authority registrations.
Akums will also contribute to any required human studies for product marketing purposes or by the Food Safety Standards Authority of India (FSSAI) as part of product registration into food.
Optibiotix added that the agreement does not have any minimum sales orders and that it would update the market on sales in due course.
Akums is the largest contract manufacturing organisation in India, supplying more than 12% of all food and drug supplements consumed in the country, and has manufacturing partnerships with over 600 companies including Abbott (NYSE:ABT), Novartis, P&G (NYSE:PG), Sanofi and Sandoz, in the pharmaceutical and food supplement space.
Stephen O’Hara, OptiBiotix chief executive, said in a statement: "We are excited to announce this agreement with Akums which expands manufacturing and sales of LPLDL® into Asia. We chose Akums as they are the largest contract manufacturing company in India for both food supplements and pharmaceuticals and have extensive experience in manufacturing products for some of the biggest food and pharmaceutical companies in the world.
He added: "This agreement is a strategic step to add manufacturing to the supply chain in the Asian probiotic supplement and pharmaceutical market and extends the commercial reach of OptiBiotix's LPLDL® strain into Southern Asia. This allows OptiBiotix to offer multiple product solutions to consumer health and pharmaceutical companies within the region.
"This agreement is another step in a strategy designed to build multiple revenue streams from ingredient sales, white label and own label branded consumer and pharmaceutical products, across multiple channels, with leading industry partners from around the world."
In a note to clients, analysts at City broker finnCap said the agreement was “further evidence of the foundations that OptiBiotix is building for its LP-LDL probiotic strain.”
They added: “This represents the ninth agreement for LP-LDL and continues to demonstrate the company’s ability to attract high calibre, global partners, eager to utilise the potential cardiovascular benefits inherent within LP-LDL.”
In late-morning trading, OptiBiotix shares were steady around 73.5p.
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