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OptiBiotix New patent filing, Good but SO WHAT?

By HotStockRockets | Saturday 16 July 2016


Disclosure: Financial Investigative Media Limited, which is not owned by Tom Winnifrith but by a trust for his dependants, owns shares in companies mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


This is more good news from Optibiotix (OPTI) but it is not the dramatic news that will see the shares soaring. The company says that it has announced that it has filed a new patent to protect the combination of OptiBiotix's Lactobacillus plantarum strain along with other ingredients identified by scientific key opinion leaders which, it states, act synergistically to reduce cardiovascular risk factors.

Optibiotix states:

The patent filing follows on from the announcement on the 7 April 2016 relating to human studies which demonstrated 0.1g of a capsulated product has commercial potential as a safe, easy to use, low cost cholesterol reducing supplement. The filing of this patent extends OptiBiotix's protection across a broader range of market opportunities and increases the number of partnering opportunities.

Current products for cardiovascular disease tend to focus on single risk factors, largely LDL (bad) cholesterol. However, there is a growing evidence base that suggests cardiovascular risk is a sum of a number of factors including triglycerides and blood pressure.

Ends.

Ok it all sounds terribly positive but filing a patent is pretty much what companies such as Optibiotix do. It is not exactly shocking and therefore won't drive a re-rate of the shares. For that we need either:

a) hard signs that products will be commercialised so so generating cash and meaningful amounts.
OR

b) Numbers put on the value that could be created by the spin-off process referred to a couple of weeks ago. As it happens boss Steve O'Hara gave a clue to that in his UK Investor Presentation HERE and if he is right then all bets are off.

The shares now trade at 79-81p. Our stance remains that if you can buy at 80p or below you should and we expect news on a or b or both relatively soon and that this will indeed drive a fairly dramatic re-rate allowing we shareholders to sell at 100p or more.

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