Optibiotix Health swings to loss despite 'exciting' period

Biotechnology firm Optibiotix Health on Thursday reported that it swung to a loss for the six months ended 31 May even as it won seven new manufacturing and supply agreements across what it termed as an "exciting" period.

The company, which aims to tackle obesity, high cholesterol and diabetes, reported a loss before tax of £1.2m, compared with a profit of £3.1m at the same point last year, but expects that the new deals covering the USA, Asia, and Europe to provide a platform for significant revenue growth.

Optibiotix’s revenue increased by 8% to £80,600 and administrative expenses remained flat at £1.0m, with Optibiotix’s swinging to a loss driven by a £4.1m adjustment to the previous year’s figures in order to account for the change in value of the firm’s investment in Skinbiotherapeutics.

Stephen O'Hara, chief executive of OptiBiotix, said: "The total of nineteen deals we have signed since March 2017 translate into an increasing range of products and territories across the world there is an opportunity to deliver significant revenue growth. We have been particularly pleased with the increased interest from pharmaceutical companies in developing LPLDL as a drug product called a biotherapeutic, which creates the possibility of high, value deals in a number of territories in the future."

Optibiotix’s cash and cash equivalents stood at £1.8m at 31 May, down 11% from the same period last year.

O’Hara said that the company’s online store is fully prepped and ready to launch in September.

"This will create another channel to market our products, with the potential to become a division in its own right. On behalf of the board I would like to thank our shareholders for their continued support and we look forward to an exciting future commercialising our technology in a market forecast to become one of the world's fastest growth areas," said O’Hara.

Optibiotix Health’s shares were down 4.48% at 96.00p at 0928 BST.