A Yorkshire-based company which aims to reduce the global obesity crisis has hired advisers to explore the potential for a dual NASDAQ listing.
York-based OptiBiotix Health plc, which is a life sciences business developing compounds to tackle obesity, cardiovascular disease and diabetes, has published unaudited preliminary revenue figures and a trading, commercial, and strategic update ahead of the group's final results for the year ended November 30 2019.
The statement said: "The 12 months to November 30 2019 have seen the transition of the company from a research and development business to a company building commercial revenues and growing the number of geographies commercialising its products. Agreements signed in 2019 extended our geographic reach into 24 new countries.
"This period has seen 12 agreements start to generate revenue for the first time and seven others increase sales contributing to an increase in year on year sales across every division."
The total sales for the year were £808,000 with other income of £617,000, bringing the total amount of income for the year ending 30 November 2019 to £1.426m.
The statement added: "In line with previous years, the majority of income was generated in the second half of the year (H1 2019: £148,818). We expect this trend to continue in 2020 with a gradual smoothing in this second half weighting as income from ingredient, white label and own label products sold through retailers or direct to consumers online, provide more evenly distributed income throughout the year."
"We anticipate further revenue growth in 2020 as existing deals contribute to full year revenues, partners continue to grow sales, the launch of SlimBiome with Holland and Barrett and AlfaSigma’s launch of Ezimega 3 containing LPLDL in Italy contribute to 2020 sales and larger partners like Agropur and Akum commercialise products in home markets.
"We also anticipate a contribution from new agreements to be signed in 2020 and potential retail deals in international markets, particularly the USA. Whilst there are no guarantees these will all deliver expected sales revenues, our focus is on developing each division (Prebiotic, Probiotic, and Consumer Health) to reach profitability in 2020."
The statement added: "As we enter the next phase of the business cycle in building a profitable business and sales volumes continue to grow, we intend to renegotiate supply agreements with partners to reduce the cost of goods and improve margins. We will seek a reduction in IP and R&D costs as the needs of the business change."
Commercially in 2020, the company is looking to extend its reach into new application areas, such as hypertension, immune health and gut health, and continue to enter new territories,
The statement added: "We hope to launch a range of new products on our consumer health online platform including a range of healthy snacks (e.g gummies, pancake mixes) and porridge containing SlimBiome.
Stephen O’Hara, the CEO of OptiBiotix, commented: “This year has seen strong commercial progress with OptiBiotix extending its geographic reach and brand presence to 24 new countries and more agreements generating revenues for the first time or growing sales.
"As in previous years, the majority of income was generated in the second half of the year with total income for the year of just over £1.4m.
"We anticipate further revenue growth in 2020 as a UK launch of SlimBiome with a major UK retailer and LPLDL with AlfaSigma contributes to full year revenues, large corporate partners (e.g Agropur, Akums) commercialise products, and we extend the application of our products into new areas (e.g dairy, healthy snacks, and breakfast cereals).
"We believe interest in the microbiome will continue to grow and the market opportunity increase.
"Given high investor and consumer interest in the microbiome in the USA and growing sales the board OptiBiotix has commissioned advisers to explore the potential of a dual NASDAQ listing.”