OptiBiotix shares dip despite Filipino distribution agreement

OptiBiotix shares dip despite Filipino distribution agreement

OptiBiotix Health PLC (LON: OPTI) have seen their shares dip on Monday afternoon, despite an agreement being made for a medicinal distribution in the Philippines.

OptiBiotix Health Plc. is a life sciences company operating in one of the most progressive areas of biotechnological research.

OptiBiotix develop technologies that modulate the human microbiome – the collective genome of the microbes in the body – OptiBiotix identifies and develops microbial strains, compounds and formulations for use in food ingredients, supplements and active compounds that can impact on human physiology, deriving potential health benefits.

Shares of OptiBiotix dipped 6.47% to 47p despite the apparently impressive announcement. 9/12/19 14:03BST.

The firm has seen a mixed few months of trading, as it saw its shares crash at the end of August despite gaining new licences and partnerships during the first half of the year.

Recovery was made by the firm however, in September it reported an agreement with a US company for the use of its cholesterol reducing Lactobacillus plantarum strain as a pharmaceutical drug product.

Today, the firm has said that t has signed an exclusive deal for distribution of probiotic supplement ‘CholBiome x3’ in the Philippines.

The deal was signed between OptiBiotix subsidiary ProBiotix Health Ltd and CTC Group unit CTC Far East Philippines Inc. CTC Group itself is the global business network group of Koen Visser Corp.

The deal’s exclusivity is subject to minimum order quantities, as well as a multi-year business plan aimed at improving OptiBiotix’s security in terms of income and revenue growth.

ProBiotix Chief Executive Steve Prescott said: “We are pleased to announce this agreement with CTC, which will expand ProBiotix’s presence in the emerging Asia-Pacific region. CTC was chosen as our partner for CholBiomex3 product introduction in the Philippines because of their extensive knowledge of the local market and consistent track record successfully launching new products.”

Many pharmaceuticals firms have made an ensured effort to tap into the relatively young Asian market.

It was reported last week that FTSE100 listed AstraZeneca plc and Merck & Co had reached marketing authorization from China’s National Medical Products Administration for their Lynparza drug.

This seems like a relatively good move, however shareholders of OptiBiotix do not seem so optimistic.

As the market continues to be come more and more saturated, dominated by names such as Pfizer  who recently smashed market and analyst expectations, it seems that OptiBiotix will have to work on their products more to satisfy shareholders.