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OptiBiotix signs manufacturing deal with unnamed US firm
15th Sep 2020 08:49
(Sharecast News) - Life sciences company OptiBiotix Health has entered into an agreement with an unnamed US company, it announced on Tuesday, for the large-scale manufacture and commercialisation of a number of 'SweetBiotix' products.
The AIM-traded firm said the deal granted the US company an exclusive worldwide licence, in return for it bearing the costs relating to product manufacturing, marketing, and all future costs around the commercialisation of the products.
OptiBiotix said it would receive a "modest" six-figure payment from the company on signing, and at 12-monthly intervals, until product launch.
Additional similar payments would be due on product launch, plus royalties on all future product sales.
Enhanced royalty payments would be made to OptiBiotix on the sale of SweetBiotix products by the company to 11 application and innovation partners, with which OptiBiotix had been in long-term discussions around the use of SweetBiotix products in dairy, cereal and beverage applications.
The board said the US company required its identity and certain commercial terms of the agreement to remain confidential, to protect its commercial launch plans.
"We are pleased to announce this agreement for SweetBiotix, a family of products based on the concept of creating a sweet fibre with a low glycaemic index which enhances the microbiome," said chief executive officer Stephen O'Hara.
"The agreement allows the US company to invest in the large-scale manufacture and commercialisation of a number of SweetBiotix products in return for upfront, annual and product launch milestone payments, plus royalties on all future product sales.
"With concerns over the amount of sugar and lack of fibre in consumer diets creating high levels of diabetes and obesity, this agreement brings closer the prospect of replacing 'unhealthy' sugars with healthy sweet fibres which contain no calories and improving microbiome diversity and the benefits of SweetBiotix technology to a global audience."
At 0848 BST, shares in OptiBiotix Health were up 10.19% at 54.54p.
The AIM-traded firm said the deal granted the US company an exclusive worldwide licence, in return for it bearing the costs relating to product manufacturing, marketing, and all future costs around the commercialisation of the products.
OptiBiotix said it would receive a "modest" six-figure payment from the company on signing, and at 12-monthly intervals, until product launch.
Additional similar payments would be due on product launch, plus royalties on all future product sales.
Enhanced royalty payments would be made to OptiBiotix on the sale of SweetBiotix products by the company to 11 application and innovation partners, with which OptiBiotix had been in long-term discussions around the use of SweetBiotix products in dairy, cereal and beverage applications.
The board said the US company required its identity and certain commercial terms of the agreement to remain confidential, to protect its commercial launch plans.
"We are pleased to announce this agreement for SweetBiotix, a family of products based on the concept of creating a sweet fibre with a low glycaemic index which enhances the microbiome," said chief executive officer Stephen O'Hara.
"The agreement allows the US company to invest in the large-scale manufacture and commercialisation of a number of SweetBiotix products in return for upfront, annual and product launch milestone payments, plus royalties on all future product sales.
"With concerns over the amount of sugar and lack of fibre in consumer diets creating high levels of diabetes and obesity, this agreement brings closer the prospect of replacing 'unhealthy' sugars with healthy sweet fibres which contain no calories and improving microbiome diversity and the benefits of SweetBiotix technology to a global audience."
At 0848 BST, shares in OptiBiotix Health were up 10.19% at 54.54p.