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Optibiotix - you wanted a big name deal - here you go: Sacco. Rejoice! Buy!

By HotStockRockets | Thursday 9 March 2017


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.


Oh ye of little faith! Ye who panicked that Optibiotix (OPTI) has not publicly announced that the big name party in the last deal was Tata. Fear not it will and there will be exciting news on that soon. Ye who thought there were no more deals. You were wrong and that is why we have been urging you to buy the shares at up to 80p again and again. The shares are now 71p-74p.

Optibiotix has entered into a manufacturing and supply agreement with Sacco S.r.l which grants Sacco an exclusive licence to manufacture and supply OptiBiotix's cholesterol reducing strain, LPLDL®, in Europe in return for 50% of the profit with a minimum price per kilogramme to secure against discounting.

Sacco is old, established and big. It was set up in 1934 and supplies raw probiotic ingredients - including some of the world's leading strains, to more than 2,500 businesses across Europe.

LPLDL® will be supplied by Sacco as a raw ingredient to food, beverage, consumer healthcare and pharmaceutical partners to be incorporated into a wide range of final formulations and presentations. According to Optibiotix:

"These will be subject to separate license agreements creating the opportunity for multiple revenue streams at different points in the value chain arising from:
· Profit share of the sale of the strain as an ingredient by Sacco
· Royalties from the sale of higher value white label formulations, and branded products from consumer healthcare and pharmaceutical partners"

So real monies and soon are heading to Optibiotix from this deal but this is just one product and one market ( albeit Europe is vast market). Optibiotix chose Sacco as it is the leader in Europe. In other markets there will be other partners. Boss O'Hara says

"Discussions are progressing with corporate partners for the manufacture and supply of products containing LPLDL® in the US, Asian and other international markets. We believe working with Sacco, and similar partners around the world, provide the best opportunity of building LPLDL® into a global brand."

And this is just one of many Optibiotix products! There will be more RNS statements like this on other products and other territories in the coming months. And that is why this is so exciting.

At up to 80p buy - we will be advising you to bank gains at 100p + far sooner than you can imagine.

This article first appeared on HotStockRockets - its always paying customers first.  If you missed out on yesterday's  red hot share tip out at noon, fear not there are TWO more on the way within the next four weeks and you can access the lot and all of our archive for just £5, HERE


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