OptiBiotix Health shares tumbled 27.4% to 19.7p in late morning trading on Wednesday after the group reported current sales in its new structure following its listing of ProBiotix on the AQSE to be “materially lower” than expected in HY1.
The health sciences firm reported expected sales of £120,000, with sales normalising in HY2, but at insufficient levels to account for its HY1 deficit, with a return to growth in FY 2023.
OptiBiotix attributed its poor sales to delays in partners restocking due to uncertainty in the macro-economic environment, alongside delayed regulatory approvals postponing launches until HY2.
The company confirmed it had received the appropriate approvals, and expected launches over the next several months.
OptiBiotix added it was progressing discussions to increase its number of larger partners to mitigate the risk of heavy impacts linked to partner delays in its future sales.
The group noted a balance sheet with gross assets of £22 million against £28 million the year before, with approximately £1.5 million in cash compared to £993,000 at the close of June.
OptiBiotix mentioned several highlights in its outlook, including its GoFigure product launches in India and Saudi Arabia.
The group also noted its recent deal with fragrance and taste company Firmenich to facilitate the introduction of SweetBiotix to large markets.
“The Company has invested in expanding its commercial and business development team in key strategic markets like the USA and Asia and as part of its drive to build its direct-to-consumer sales. We hope to see the return on this investment later this year and more significantly in FY 2023,” said OptiBiotix CEO Stephen O’Hara.
“The aim for the second half of the year is to focus on growing sales with existing partners, building the online direct to consumer business, and launch GoFigure products in India with Apollo Hospitals and in the Kingdom of Saudia Arabia with Nahdi Medical. We will also be looking to attract more larger partners, particularly from the USA, and in-license or acquire additional technologies to ensure a continuous pipeline of solutions to strengthen our position as one of the leading companies in the rapidly growing microbiome space.”
“We are fortunate in having a healthy balance sheet and £1.5m cash in the bank to continue to invest in building the business. We also retain exposure to the growth potential in probiotics and skincare through the Group’s shareholdings in ProBiotix Health plc and SkinBioTherapeutics plc.”
