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The actual text was > 100k tonnes and this is for only DSM Firmenich.
The US partner will most likely have similar forecast with any few of the big 11 global MTA partners signing up for sweetbiotix. I think this is in the early stages of a major re-rate of the sp.
I think if it was a typo we would have had an amendment by now? I think we have been, through not actually knowing, guessing on the most skeptical percentages, but this rns from last year did state actual percentage royalties. It's hard to comprehend these figures and what it would mean for the company.
From last July's RNS;
A manufacturing agreement signed with a US partner in September 2020. They are paying OptiBiotix a six figure annual milestone in H2 every year during scale up plus a six figure launch milestone payment with royalties of 5% on all sales and a further 5% on sales to 11 named companies (Kelloggs, Nestle, Coca Cola , Firmenich, Tereos, Cargill, Arla ,Tate and Lyle, Agropur, Givaudan, Tata) reflecting the development work ongoing with these partners before we signed the agreement.
@AustinTexas, I had a quick look at some sugar suppliers, you may have heard of Kent Foods, they had this on their website:
"Kent Foods is Europe’s largest independent supplier of sugars, selling 350,000 tonnes of sugar every year. Here at Kent Foods, we are completely independent. This means that we can advise you on the best wholesale sugar for your requirements from our own Sucranna Sugar range to the ranges of the World's major refiners."
As this is just 1 independent supplier, and there are many others, I think 100K per annum for us is very good for a starter and as Sweetbiotix get's more established, I can see that increasing rapidly in a 2-3 years times. We also have the supplier across the pond also, and if they were to do a similar preliminary forecast of 100k tonne per annum as well, that'll be 200k tonne.
I still can’t get over the 100,000 tonnes per year. My instinct tells me the number is wrong and should be 1000 tonnes. Just for a moment visualise a single ton of product in a cube container maybe 1 .5 meter in size - put a thousand of those together- now do that 100 more times, I bet you couldn’t fit it in an oil tanker. And that’s just a years product?
Even if Opti receive £1000 per ton (£30k for Slimbiome!?) that’s £100m per year. This would blow every one of those “70+” previous agreements out of the water - combined! That amount of product would surely equate to complete worldwide domination of sugar products.
Someone please convince me the numbers and revenue are correct!
I think it's a very good update. It would have been nice to know if they had hit profitability in all the divisions as was the aim on a month-by-month basis by Dec 23. Good to see us concentrating on the bigger markets now.
As regards to Sweetbiotix, that was one of the main things that attracted me to Optibiotix many years ago (too bad I got in when share price was a lot higher compared to now), it definitely has been slow going, but 2024 is the year for us. I think someone was trying to compare the 100K tonne to what Stevia produce, but I don't think we can make a comparison to that as ours is a bulk sugar replacement (so if product has 100g of sugar, I assume they would use roughly around 100g of sweetbiotix, we need a lot more info around this though ), whereas Stevia is just a sweetener so only need a tiny bit to sweeten stuff.
Awesome to hear it's already been added to a finished product already and that we should expect to see many more throughout 2024. I'm finally really excited for this year after waiting patiently for several years.
Not to forget we still have "MicroBiome Modulators" in the pipeline, which could be massive. Does anyone know if any timelines have been mentioned around that?
The climate could not be better for a sweetbiotix launch although the wait has frustrated us all.It is becoming clear that sugar and sweeteners in ultra processed food has caused nearly the same morbidity and mortality as smoking.Many countries have legislated against this food type and surely the UK will belatedly follow.Gut health is now known to be an essential for our general health.We have products that will fit perfectly with the move away from ultra processed ,high sugar/artificial sweetener full foodstuffs.Several global companies have expressed their wish to embrace healthier food so if we are good enough we should get into the team.
I wonder whether some big holder may have been determined to sell into the mid 20s to account for the volume that has been shifted without a massive swing I'm share price. Hopefully that seller is now done and the handbrake can come off.
Yes very muted response given the potential health benefits from this product
Abstract
The gut microbiota and their metabolites could play an important role in health and diseases of human beings. Short-chain fatty acids (SCFAs) are mainly produced by gut microbiome fermentation of dietary fiber and could also be produced by bacteria of the skin and vagina. Acetate, propionate, and butyrate are three major SCFAs, and their bioactivities have been widely studied. The SCFAs have many health benefits, such as anti-inflammatory, immunoregulatory, anti-obesity, anti-diabetes, anticancer, cardiovascular protective, hepatoprotective, and neuroprotective activities. This paper summarizes health benefits and side effects of SCFAs with a special attention paid to the mechanisms of action. This paper provides better support for people eating dietary fiber as well as ways for dietary fiber to be
AqSu, thanks for posting.
Things are even better for sweetbiotix than relayed in the latest RNS. Having spotted there was no mention of the standalone sweetbiotix product referred to in the sweetbiotix update RNS less than a month ago, I posed the following question and received the response below.
"One question regarding the sweetbiotix statement "The Company has included SweetBiotix® in a finished product for a large global partner with a view for an upcoming launch. The Company hopes to see SweetBiotix® in an increasing number of products launched throughout 2024." Does this mean that there is no longer an intention to first launch sweetbiotix as a direct bulk sugar replacement as announced in the sweetbiotix update less than one month ago?
"Discussions are ongoing but are likely to involve a phased introduction of SweetBiotix® products as a direct bulk sugar substitute and then introduced into OptiBiotix's and partners consumer products across an increasing range of applications. "
Response from SOH
"We still intent to launch sweetbiotix as a bulk sugar replacement. These two approaches are not mutually exclusive. We have been surprised and somewhat pleased that progress has been made so quickly with a large corporate in terms of inclusion in a final product."
So two shots at goal :)
A six figure payemt to be made every 12 months nail product launch? How many 12 month periods are they expecting to wait until product launch? What payments would be expected after product launch?
DC, no it's not you. It's everyone else! Lol, wink emoji.
As you saw, yesterday's RNS was to update progress on 1st generation products. So for me, it was a nice surprise to see an exciting snippet about Sweet, at the end of the lengthy announcement. I hope it wasn't SOH teasing us and that the launch of 2nd generation products is truly imminent. And, that we will get separate, "transformational" updates on Sweet. Cheers. MU.
PS: let's hope in this leap year, the SP does a big leap. Up!
I was thinking the same. The volume though tells a different story than the share price which is even wierder. Huge volume both days with very little share price movement today.
Very odd
I can't understand the muted response to yesterdays Sweetbiotix news. Surely the numbers we're seeing here will lead to staggering revaluation of the company? procurementresource.com/resource-center/stevia-price-trends
Is it me, am I missing something obvious?
Original US sweetbiotix deal -
OptiBiotix will receive a modest six-figure payment from the Company on signing the agreement and at 12 monthly intervals until product launch. Additional similar payments will be due on product launch plus royalties on all future product sales.
Does this mean another payment on the launch of the first sweetbiotix product?
Our FD (albeit part-time) was only appointed on 4th Dec 2023
https://www.optibiotix-ir.com/content/news/archive/2023/041223
but now also noted on website
https://optibiotix.com/corporate/
albeit i accept an update to the revenue potential from May 2023 slides , prior to his appointment, would be more than useful - but give him a bit more time!
slides here - which at time of release i noted underwhelming for 2024 and even 2025
https://www.walbrookpr.com/docs/librariesprovider48/default-document-library/investors/optibiotix---investor-presentation-may-2023.pdf
just reminding the bb re the only figures we have to date - again as far as i'm aware
mol
Evening all
a positive step forward indeed and further improvement on the last rns only c 3 weeks ago
https://www.optibiotix-ir.com/content/news/archive/2024/300124
a reminder from May 2023 presentation and deals signed - albeit nothing since on dsm-firmenich % royalty, as far as i'm aware, unlike US partner
SweetBiotix: A portfolio of sweet low-calorie fibres created by combining prebiotic functional fibres and modified mogrosides or steviol glycosides in a single enzymatic step
Commercial Status:
i. Manufacturing agreement signed with US partner September 2020 for mogroside product
i. Scale up optimization completed/optimised products received December 2022 as liquid, freeze dried in May
ii. Partner taste testing confirms product acceptability. Analytical testing and structural analysis underway
iii. Structural analysis underway to determine novelty and the regulatory pathway
iv. Independent peer reviewed publication confirms sweetness and prebiotic functionality highlighting health benefits – start of marketing
v. Six figure annual milestone paid during scale up plus six figure launch milestone
vi. Royalties 5% plus a further 5% on 11 named companies( Kelloggs, Nestle, Coca Cola ,Firmenich, Tereos, Cargill, Arla ,Tate and Lyle, Agropur, Givaudan, Tata)
ii. Agreement signed with Firmenich July 2022 for stevia glycoside product
i. Manufacturing agreement signed and project progressing rapidly
ii. Manufacturing scale up underway, product produced and tested, process optimization underway to enhance yield
iii. Payments: Six figure payment per market approval (USA/Europe/Asia) - potential H2 2023/H1 2024
iv. One off six figure milestone when reaching $5m and $12m sales plus royalties on all sales
Next Steps:
Structural and functional analysis, regulatory approvals, partner application development and launch discussions
which more or less is noted in
https://www.optibiotix-ir.com/content/news/archive/2023/190723
mol
The statement read > 100k tonnes
Opti will make a big chunk even on 10k tonnes.
This is starting to look very interesting.
If theses numbers come through. 100k metric tonnes per annum, from 'ONE' of its SweetBiotix® partners.
Mind blowing.
OK no financials but the big big takeaway is absolute confirmation of product launch with sweetbiotix and more on the way this year.The launch of a sweetener of this type is actually perfect timing.Reports of the adverse effects of artificial sweeteners on the gut microbiome means the traditional sweeteners are on the way out and hopefully sweetbiotix is the one the industry goes for and then its game on and a complete transformation of the company is about to happen.The science is there and fits the criteria the big companies are after and we must assume after all this time they have got the taste right and the Stevia aftertaste is history.
I will not be surprised if governments start to legislate against standard artificial sweeteners and there will then be a rapid switch to prebiotic sweeteners and we are led to believe we are a leading light so this could be the moment we have waited a long time for.
It won't be too long before Stephen is plumping up this company for a sale so if I was younger I would tuck the shares away and forget about them for a while.I think this confirmation will be the start of a steady rise until the product arrives but we will have to see on that one.
Thats per year as well. Imagine how much end product that will make. Isn’t it “tiered “ revenue as well, where Opti receive multiple streams from manufacturer/ingredients/retailers?
Slimbiome fibres retail at £30k per tonne
Yes, the fact that we are about to go on the shelves with Sweet is huge. It means the final tests on taste and shelf life.
Plus I would love if anyone had some insight into what the tonnage of Sweet Firmenech are projecting is worth to hs.
The spoonful of sugar was hidden at the end and was possibly the most important part.
Very wordy as usual. Plenty of %s. Some perhaps more useful tonnages. Have to wait for revenues. But it was a pretty positive update.
Overall I'm pleased to have this update than nothing at all. Fingers crossed SweetBiotix is really imminent