17th Jan 2020 10:32
(Alliance News) - OptiBiotix Health PLC said Friday it hopes to achieve profitability in financial 2020 and is exploring a potential dual-listing in New York.
Shares in the life sciences company were down 10% in London on Friday morning at 49.26 pence each.
OptiBiotix, which is focused on human microbiome products, generated total sales of GBP808,000 in the year ended November 30, as its transitioned from a research and development firm to a company with commercial revenue.
"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 company said.
OptiBiotix expects revenue for financial 2019 to be GBP1.4 million, almost triple the GBP541,614 seen the year before.
In line with previous years, the majority of the company's revenue was generated in the second half. OptiBiotix expects this to continue in financial 2020, but will eventually "smooth" when it begins to sell more products to retailers or customers online, allowing for more evenly distributed revenue throughout the year.
OptiBiotix expects further revenue growth in financial 2020, with deals signed during 2019 expected to contribute a full year's worth of revenue.
"We also anticipate a contribution from new agreements to be signed in 2020 and potential retail deals in international markets, particularly the US. 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 company added.
To boost this effort, OptiBiotix intends to renegotiate supply agreements to reduce costs and improve margins.
At the end of November, OptiBiotix had GBP687,699 in cash.
Chief Executive Stephen O'Hara said: "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."
OptiBiotix believes growth stems from its ability to sell to consumer health, pharmaceutical and retail companies providing multiple revenue streams from ingredient sales, white label and own branded products.
As part of this, OptiBiotix appointed goetzpartners securities in 2019 to improve its international buy side access. The company said it was a "strategic step to broaden the company's investors base and reduce market volatility from low liquidity on the AIM market".
Continuing this strategy, OptiBiotix said it has commissioned advisors to look into the possibility of a dual Nasdaq listing.
"Whilst there is risk and increased cost associated with a potential dual Nasdaq listing, the high level of investor and consumer interest in the microbiome in the US, the potential for greater liquidity and valuation, and the OptiBiotix's growing presence in the US through its partners (Seed Health, Agropur) suggest there is sufficient potential to continue exploring this path," OptiBiotix explained.
O'Hara added: "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 US and growing sales the board OptiBiotix has commissioned advisors to explore the potential of a dual Nasdaq listing."
By Paul McGowan; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
OptiBiotix Health