OptiBiotix Health's cholesterol reducing strain to be manufactured by Sacco

Probiotic company Sacco is to manufacture and supply OptiBiotix Health’s cholesterol reducing strain, LP LDL, in Europe in return for 50% of the profit.

OptiBiotix has agreed Sacco cannot go below a minimum price per kilogramme to secure against discounting.

As part of the deal LP LDL will be supplied by Sacco as a raw ingredient to its customers in the food, beverage, consumer healthcare and pharmaceutical sectors, so it can be incorporated into a range of final formulations, which will be subject to separate license agreements creating the opportunity for multiple revenue streams.

AIM-listed OptiBiotix will gain royalties from the sale of higher value white label formulations, and branded products from partners in consumer healthcare and pharmaceuticals.

Chief executive Stephen O'Hara said: "We chose Sacco due to their industry reputation, extensive European network and track record in building sales for what have become some of the world's best selling probiotic strains. We believe that OptiBiotix's strong supporting science, and growing industry awareness of our LP LDL cholesterol and blood pressure reducing strain, has created a high level of interest in using LP LDL as a functional component in a wide range of consumer healthcare and pharmaceutical products.

“We believe working with Sacco, and similar partners around the world, provide the best opportunity of building LP LDL into a global brand.”

He added that there are ongoing discussions with corporate partners for the manufacture and supply of LP LDL products in the US, Asian and other international markets.

Shares in OptiBiotix Health were up 5.82% to 75.13p at 0936 GMT.