LONDON (ShareCast) - (Sharecast News) - Life sciences company OptiBiotix Health updated the market on its strategic and commercial progress on Wednesday, reporting that the next phase of its strategy would involve reinvesting proceeds from the recent sale of SkinBioTherapeutics shares, which generated £2m.
The AIM-traded firm said the funds provided growth capital to broaden and expand its sales and marketing team, accelerate new product development, increase marketing spend, and explore direct-to-consumer channels in strategic markets.

It said the funds would also allow it to invest in acquiring new technologies to create a future pipeline of products.

On the commercial front, OptiBiotix said it signed three deals with "market-leading" partners in December, being The Hut Group (THG), Apollo Hospitals, and Nahdi Medical.

THG launched 'LeanBiome' in its Impact Diet Lean product in January as part of its MyProtein range, with territorial expansion across Europe, Asia, and the United States planned throughout the year.

The in-house launch of 'GoFigure' products with Apollo Hospitals was expected in the first half, and would expand to other stores as well as online.

Nahdi Medical, meanwhile, planned to launch seven 'GoFigure' and 'SlimBiome Medical' products in the first half.

"The group's ambition is to secure eight to 10 large national or international partners for first-generation products and two to three partners for each of the second-generation technologies," the board said in its statement.

"This is expected to give the company a presence in markets of strategic interest and a level of contingency as partners change over time."

Looking at its scientific strategy, the company said it would invest more in its science during 2022 as it looked to expand the use of its products into new areas of health, such as stress, anxiety and diabetes.

It would also acquire or in-licence new technology to further develop its pipeline of opportunities, and maintain its position in the microbiome space.

As part of its increased investment in sales and marketing, OptiBiotix said it was establishing a sales infrastructure for business-to-business ingredients in the US, and investing in growing e-commerce sales for its direct-to-consumer brands in Europe and Asia.

The company said it viewed consumer brands as a "significant growth opportunity" for its products, and was exploring inhouse and outhouse solutions in different markets.

To support that, it said iot had appointed Karl Burkitt as director of marketing on a consultancy basis, bringing his experience from AB Foods, Kerry Foods and Novartis Consumer Health.

It was also in discussions to appoint a managing director for ProBiotix Health, a direct-to-consumer business manager, a business development director for the North American market, and a marketing manager.

Steven Riley, OptiBiotix's director of marketing and consumer sales, would leave the firm at the end of February.

"This strategic and commercial update demonstrates the strong progress OptiBiotix has made against its stated aims," said chief executive officer Stephen O'Hara.

"We are particularly pleased at concluding three commercial agreements at the end of 2021 with well-known national and international partners which create the potential for volume sales and help enhance the reputation of OptiBiotix and its products around the world.

"We believe new product launches in 2022, the extension of territories with existing partners, new product platforms, and the commercial realisation of our development pipeline, allow us to look forward with confidence to further commercial progress of the group in the current year and beyond."

At 1553 GMT, shares in OptiBiotix Health were up 1.15% in London at 44p.

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