Share Search
Visit the Share Search
OptiBiotix Health amends agreement with partner Sacco
11th Mar 2020 15:08
(Sharecast News) - Life sciences company OptiBiotix Health announced on Wednesday that its wholly-owned subsidiary, ProBiotix Health, has signed a new global manufacturing and supply agreement with Sacco to modify and extend their existing relationship through to the end of 2023.
The AIM-traded firm said that under the terms of the agreement, Sacco would manufacture 'LPLDL' for ProBiotix under a global non-exclusive licence for the dietary supplement and food and dairy markets, as well as an exclusive licence for the drug and biotherapeutic market.
It said the agreement changed the original profit-sharing agreement of August 2017 to a manufacture-and-supply agreement, with pricing discounts for increasing sales volumes.
OptiBiotix said that would allow it to benefit from a reduced price of goods as sales volumes grow, and provide more evenly distributed income throughout the year.
The agreement also included commission payments from Sacco, for LPLDL sold to dairy customers.
"We are pleased to announce this agreement with Sacco, which extends our relationship with them for the next four years," said ProBiotix chief executive officer Steve Prescott.
"Sacco's commitment to manufacturing excellence, including the recently announced pharma cGMP validation of LPLDL, and their ability to manufacture of LPLDL in multiple facilities gives us confidence of a quality product and uninterrupted supply.
"The changes to this agreement reflect the focus on building a profitable business as we renegotiate supply agreements with partners as sales volumes grow to increase margins."
At 1456 GMT, shares in OptiBiotix Health were down 4.47% at 40.6p.
The AIM-traded firm said that under the terms of the agreement, Sacco would manufacture 'LPLDL' for ProBiotix under a global non-exclusive licence for the dietary supplement and food and dairy markets, as well as an exclusive licence for the drug and biotherapeutic market.
It said the agreement changed the original profit-sharing agreement of August 2017 to a manufacture-and-supply agreement, with pricing discounts for increasing sales volumes.
OptiBiotix said that would allow it to benefit from a reduced price of goods as sales volumes grow, and provide more evenly distributed income throughout the year.
The agreement also included commission payments from Sacco, for LPLDL sold to dairy customers.
"We are pleased to announce this agreement with Sacco, which extends our relationship with them for the next four years," said ProBiotix chief executive officer Steve Prescott.
"Sacco's commitment to manufacturing excellence, including the recently announced pharma cGMP validation of LPLDL, and their ability to manufacture of LPLDL in multiple facilities gives us confidence of a quality product and uninterrupted supply.
"The changes to this agreement reflect the focus on building a profitable business as we renegotiate supply agreements with partners as sales volumes grow to increase margins."
At 1456 GMT, shares in OptiBiotix Health were down 4.47% at 40.6p.