OptiBiotix enters three year deal with HLH BioPharma

Life sciences compound developer OptiBiotix Health announced on Thursday that it had entered into a three-year supply agreement with HLH BioPharma Vertriebs, covering the supply of its ‘LPLDL’ capsules.

The AIM-traded company said the agreement granted HLH a non-exclusive license to produce, package and commercialise products containing OptiBiotix's cholesterol reducing LPLDL strain, with a view to maximising the financial return for both parties.

It said the agreement followed on from the sales order of 100,000 units of LPLDL to HLH announced on 25 April, and reflected growing consumer interest and distributor confidence in the product’s market appeal.

HLH has more than 20 years of experience in the distribution of probiotic and natural products under the brand names ‘Lactobact’ and ‘Casa Sana’, the OptiBiotix board explained, and it was considered one of Europe's leading suppliers of probiotics to the pharmacy market.

LPLDL would be supplied as bulk capsules, which would be packaged and branded as part of HLH's ‘Lactobact’ brand.

The agreement provided mutual commercial commitment with ongoing revenue, the board explained, adding that it reflected the “growing confidence” in the science behind LPLDL as a functional component, and its future brand value in a range of consumer healthcare and pharmaceutical products.

Sales volumes were difficult to estimate in the “new and developing market”, OptiBiotix claimed, adding that further updates would be provided as HLH built market presence and revenue streams.

“We are pleased to announce this three year supply agreement with HLH which demonstrates an ongoing financial commitment in building the brand from one of Europe's leading suppliers of probiotics to the pharmacy market,” said OptiBiotix CEO Stephen O'Hara.

“We see this as an important next step in building stable long-term revenues and increased brand recognition of LPLDL.”