LONDON (ShareCast) - (Sharecast News) - Life sciences company OptiBiotix Health has entered a three-year distribution agreement with Pierce Group Asia subsidiary Pierce ESIM, it announced on Tuesday.
The AIM-traded firm said Pierce, founded in 2002 and based in Singapore, specialises in cross-border corporate development and investments, with a focus on high-growth partnerships.

It is an Asian focused business-to-business product developer and distributor, with an "experienced" leadership team and extensive corporate network, the OptiBiotix board said.

The agreement granted Pierce exclusive rights to import and commercialise OptiBiotix's 'SlimBiome' and 'LPLDL' to manufacture, develop, and sell a wide range of finished products to China and Hong Kong, with the aim of maximising the financial return for both parties.

Under the agreement, Pierce would also conduct business development activities in other Asia-Pacific geographies, to advance OptiBiotix's commercial interests.

Market exclusivity was linked to minimum yearly order quantities.

OptiBiotix said the agreement is an "important step" in meeting the growing need for weight management and cardiovascular products in the large consumer markets of China and the Asia-Pacific.

It noted that China has the largest number of overweight or obese people worldwide, with about 46% of adults and 15% of children being obese or overweight, and added that non-communicable diseases accounted for 87% of total adult deaths in China, of which cardiovascular diseases account for 45%.

China has one of the highest cardiovascular disease death rates in the world with one in five adults in China estimated to have cardiovascular disease.

The Chinese vitamins, minerals and supplements industry increased 9.2% between 2017 and 2018, to reach a total market size of $21bn, it added.

OptiBiotix said the agreement was another "strategic step" to take its SlimBiome and LPLDL to international markets, following the announcement of more than 60 commercial agreements in the last three years.

"We chose Pierce due to their team's experience in working with large corporates and major retailers across Asia," said chief executive officer Stephen O'Hara.

"Their leadership team has a track record of corporate deal making in the complex Asian market and an extensive regional network.

"We believe partnering with Pierce is an important step in accessing the large and growing Chinese and Hong Kong health market."

O'Hara said the company hoped the combination of its strong science, growing global brands, and Pierce's local knowledge and expertise would help bring the benefits of SlimBiome and LPLDL to China's 350 million obese and 290 million patients with cardiovascular disease.

"We believe working with Pierce, and similar partners around the world, provides the best opportunity of increasing our global commercial reach and catering for the growing interest we are seeing in our products from partners worldwide."

At 1444 BST, shares in OptiBiotix Health were up 4.95% at 57.2p.

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