TIDMOPTI
OptiBiotix Health PLC
19 July 2023
OptiBiotix Health plc
("OptiBiotix" or the "Company" or the "Group")
SweetBiotix (R) overview
OptiBi otix Health p lc (AI M : OPTI), a life sciences busi ness
d e vel o ping co m p o u n ds to tack le o besit y, high choleste
r ol, diabetes and skincare, provides an overview of its
SweetBiotix (R) product range in the light of recent news interest
in sweeteners.
Market need
The sugar substitutes market is projected to grow from USD 18.8
billion in 2023 to USD 24.3 billion by 2028, growing at a compound
annual growth rate of 5.2% (Research and Markets, April 2023).
Sugar substitutes taste sweet but do not contain sugar. They have
fewer calories than sugar or no calories at all and fall into three
categories: artificial sweeteners (e.g aspartame, sucralose,
saccharin), sugar alcohols (e.g. erythritol, xylitol, sorbitol) and
novel or natural sweeteners (e.g stevia, monk fruit). Key factors
driving the industry growth are the changing consumer preference
for healthier and low-calorie foods which do not increase blood
sugar and contain low or no calories reducing the risk of obesity
related lifestyle disorders such as diabetes and cardiovascular
diseases. There is also a market for direct sugar replacement with
high fructose corn syrup due to its lower costs, better stability,
and its availability in liquid form which makes it a preferred
choice in processed foods (
https://www.fortunebusinessinsights.com/high-fructose-corn-syrup-market-103273
) .
There is no ideal sweetener for all applications and use varies
widely by geography and application type. A number of widely used
sugar substitutes have been linked to health concerns including
increased blood sugar levels and the risk of diabetes (sucralose
and saccharin
https://www.diabetes.co.uk/news/2022/aug/popular-artificial-sweeteners-found-to-raise-blood-sugar.html
), cellular DNA damage (sucralose: see Common artificial sweetener
may cause DNA damage, cancer (medicalnewstoday.com ), and as
possible carcinogens (aspartame:
https://www.bbc.co.uk/news/health-66057216 ).
This suggests there is an unmet market need for a safe, low
calorie, healthy alternative to sugar and sugar substitutes. The
SweetBiotix(R) product portfolio has been developed to meet that
need.
Meeting the market need
OptiBiotix has developed a portfolio of novel, patented, zero or
low calorie sweet dietary fibres, called SweetBiotix (R) . They are
unique in that they do not have the health concerns associated with
sugar, corn syrup, or sweeteners and importantly, from a health and
nutritional labelling perspective, are classified as dietary
fibres. In addition to the benefits of increasing fibre intake,
SweetBiotix (R) fibres have been shown to have a prebiotic effect
(RNS: 20.02.19) by increasing the production of short chain fatty
acids ("SCFA"). SCFAs are widely known for their importance in gut
health, immunity and how energy is metabolised in the body and are
one of the main ways in which the gut microbiome contributes to
better health. This creates a clear differentiator to other
products on the market and an opportunity to replace unhealthy
sugars with healthy fibres in a range of food and beverage products
and as an ingredient in its own right.
The SweetBiotix (R) portfolio contains a range of products which
human studies have shown have high (240X the sweetness of sugar) to
moderate levels of sweetness (3X) to meet the needs of a wide range
of application including fizzy drinks, snacks, bakery products,
dairy products and cereals . As a general guide, the high-level
sweet products could be considered a replacement for existing
sweeteners whilst the moderate level sweetness products as bulk
sugar replacement products. The strategy is designed to create
multiple opportunities which offer added value and use for a wide
range of product applications. Whist taking longer, this reduces
the commercial risk which would exist with a single product
approach whilst increasing the scale of the opportunity.
Product developments
OptiBiotix's products are differentiated from other natural
sweeteners and sugar substitutes on the market in that they have
been developed: -
i. To be classified on packaging as dietary fibres providing no
contribution to sugar intake and enhancing product nutritional
labels.
ii. Have a low glycemic index (reducing the risk of developing diabetes).
iii. Enhance the gut microbiome providing additional potential health benefits.
iv. Have intense sweetness (High Intensity Sweeteners) or
sweetness similar to sugar (depending on product).
The Company is not aware from patent searches and partner
meetings of any other products currently available which have these
characteristics.
Partner agreements
The Company has been working with a wide range of industry
partners since 2020 and has Material Transfer Agreements ("MTA"),
and/or Non-Disclosure Agreements ("NDA"), and/or Open innovation
arrangements with well-known consumer brands like Kellogg's,
Nestle, Coca Cola, Cargill and more specialised sweetener and fibre
groups like Tereos, Givaudan, Sudzucker, Puratos and Firmench.
These agreements allow us to share information and products whilst
protecting our intellectual property and partners to receive
information and different SweetBiotix(R) products to test within
their product ranges. This allows them to assess texture, taste,
stability, and how they would incorporate Sweetbiotix(R) into their
product manufacturing processes.
We developed SweetBiotix(R) in the laboratory and have been
working on novel methods to scale up the manufacturing process to
produce at industrial scale to supply large partners whilst having
the same structural, prebiotic function, and taste and texture. We
have been doing this through two different agreements for two
different types of SweetBiotix(R). These are:-
1. A manufacturing agreement signed with a US partner in
September 2020. They are paying OptiBiotix a six figure annual
milestone in H2 every year during scale up plus a six figure launch
milestone payment with royalties of 5% on all sales and a further
5% on sales to 11 named companies (Kelloggs, Nestle, Coca Cola ,
Firmenich, Tereos, Cargill, Arla ,Tate and Lyle, Agropur, Givaudan,
Tata) reflecting the development work ongoing with these partners
before we signed the agreement.
2. An agreement was signed with Firmenich in July 2022 to
optimise scale up and development of another type of
SweetBiotix(R). They will pay OptiBiotix a six figure payment per
market approval (USA/Europe/Asia) plus royalties and additional
milestones on sales. As previously disclosed, Firmenich are one of
the world leaders in taste and the world's largest stevia supplier.
Their turnover is around GBP3.6bn per year which has risen to US
$11.4bn annual turnover following their merger with DSM, and are
now known as DSM Firmenich. They are experts in their field and
chose SweetBiotix(R) after an 18 month due diligence process. This
agreement with one of the leaders in the field after extensive due
diligence of the science, taste, and intellectual property, is a
substantial validation of the SweetBiotix (R) science and
commercial potential.
Our products are also tested by different academic groups
providing an independent assessment of their taste and prebiotic
functionality. The most recent peer reviewed publication (see
Prebiotic Potential of a New Sweetener Based on
Galactooligosaccharides and Modified Mogrosides - PubMed (nih.gov)
) in a respected industry journal concluded 'These substrates could
be considered as novel candidate prebiotic sweeteners, foreseeing a
feasible and innovative approach targeting the sucrose content
reduction in food. This new ingredient could provide health
benefits when evaluated in human studies by combining sweetness and
prebiotic fibre functionality'.
The combination of a major industry partner with specialist
expertise investing in manufacturing scale up and verification of
novelty and health potential in a number of academic publications
should give investors confidence in the science and potential of
the SweetBiotix (R) product range .
Current position
Both product types are at the end stage of manufacturing scale
up with ongoing testing of samples with both partners. This is a
complex and rigorous process. Typically, global partners with
established brands require confirmation of a robust supply chain
for all ingredients (ethically and responsibly sourced) from two
different suppliers, low waste streams, humans studies/taste tests
and structural and functional analysis on liquid and freeze-dried
products from three different production runs to show there is no
batch to batch variability. In addition, most require two year
shelf life of SweetBiotix (R) as an ingredient and in their final
products with no observable effect on appearance, taste, or texture
or functionality.
We are pleased to report s ignificant progress by both partners
in the commercial scale production of SweetBiotix (R), with final
product taste tested and accepted by our US partner. Liquid and
freeze-dried products are undergoing independent structural
analysis and expert panel taste testing to determine sweetness, off
tastes, aftertastes etc when compared to sucrose and other
products. This will determine the type of product suitable for each
type of SweetBiotix(R) product and the regulatory pathway before
progressing to a launch. We anticipate most results should be
returned over the summer when we can start partner application
development and launch plans.
S tep hen O'Ha r a, CEO of O pti B i oti x, c o mmented: "The
development of a unique product concept within an industry is high
risk, particularly in the food industry where you are competing in
an industry dominated by a small number of large global players
with demanding requirements. OptiBiotix has looked to overcome
these challenges by working closely with partners during the
product development process and believes it has created a product
portfolio of sweet prebiotic fibres, called SweetBiotix (R), which
meet a large and growing unmet industry and consumer need.
SweetBiotix(R) are unique in being classified as dietary fibres
creating the opportunity to replace unhealthy calorific and
cariogenic sugars with healthy fibres in a wide range of food and
beverage products or as an ingredient in its own right.
" With growing industry and consumer health concerns over
traditional sugars and sweeteners, the approaching
commercialisation of the SweetBiotix(R) family of products offers
shareholders the potential for a significant enhancement in the
value of the Company."
For further information, please contact:
OptiBiotix Health plc www.optibiotix.com
Neil Davidson, Chairman Contact via Walbrook below
Stephen O'Hara, Chief Executive
Peterhouse Capital Limited (Broker) Tel: 020 7220 9797
Duncan Vasey / Lucy Williams
Walbrook PR Ltd Mob: 07876 741 001
Anna Dunphy
About OptiBiotix - www.optibiotix.com
OptiBiotix Health plc (AIM: OPTI), which was formed in March
2012, brings science to the development of compounds which modify
the human microbiome - the collective genome of the microbes in the
body - in order to prevent and manage human disease and promote
wellness.
OptiBiotix has an extensive R&D programme working with
leading academics in the development of microbial strains,
compounds, and formulations which are used as active ingredients
and supplements. More than twenty international food and healthcare
supplement companies have signed agreements with OptiBiotix to
incorporate their human microbiome modulators into a wide range of
food products and drinks.
OptiBiotix is also developing its own range of consumer
supplements and health products. The Company's current areas of
focus include obesity, cardiovascular health, and diabetes.
Forward-Looking Statements
Certain statements made in this announcement are forward-looking
statements. These forward-looking statements are not historical
facts but rather are based on the Company's current expectations,
estimates, and projections about its industry; its beliefs; and
assumptions. Words such as 'anticipates,' 'expects,' 'intends,'
'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions
are intended to identify forward-looking statements. These
statements are not guarantees of future performance and are subject
to known and unknown risks, uncertainties, and other factors, some
of which are beyond the Company's control, are difficult to
predict, and could cause actual results to differ materially from
those expressed or forecasted in the forward-looking statements.
The Company cautions security holders and prospective security
holders not to place undue reliance on these forward-looking
statements, which reflect the view of the Company only as of the
date of this announcement. The forward-looking statements made in
this announcement relate only to events as of the date on which the
statements are made. The Company will not undertake any obligation
to release publicly any revisions or updates to these
forward-looking statements to reflect events, circumstances, or
unanticipated events occurring after the date of this announcement
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END
NRAGPUMAMUPWGQR
(END) Dow Jones Newswires
July 19, 2023 02:00 ET (06:00 GMT)
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