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(Alliance News) - OptiBiotix Health PLC on Wednesday reported a widened in loss in the first half of its financial year, as the company said it continues its transition from a research & development firm into a commercial business.
Shares in the life sciences firm focusing on obesity, heart disease and diabetes were down 30% in London in mid-morning trade at 45.90 pence each.
In the six months that ended May 31, OptiBiotix's pretax loss widened to GBP1.3 million from GBP1.2 million the year before.
Revenue remained insignificant, though it almost doubled to GBP148,818 from GBP80,560. The majority of the company's revenue in the half was generated from LP-LDL with GoFigure online and export sales contributing the rest. SlimBiome revenue contributed "very little".
OptiBiotix said its administrative expenses were flat year on year at GBP1.0 million.
"This has been an exciting half-year period, with twelve commercial deals signed, six for SlimBiome and six for LP-LDL, making a total of 44 deals since mid-2017. The large number of agreements signed in the last two years demonstrate early commercial progress. The next stage of the process is to ensure these agreements deliver recurring revenue streams to build sales growth in 2019 against a continued low-cost base and create profitable divisions across all areas of the company," said Chief Executive Stephen O'Hara.
The company said its interim period reflects its continued transition from a research & development company into a commercial firm.
OptiBiotix noted, however, that it is seeking multi-channel deals, which take longer - as the company has to agree manufacturing deals and then licensing agreements - but the company said it will "maximize the income potential of each product, whilst limiting the risk related to any individual deal.
"We recognise, from past experience, that all partners may not always meet our expectations and have mitigated commercial risk where possible by agreeing non exclusivity or offering exclusivity for a specific formulation and limited time period. This allows us to continue discussions and agree deals with multiple partners in the same territory to create a competitive position where partners have to perform to ensure they retain commercial rights," the company added.
Looking forward, OptiBiotix said it expects revenue to grow further in its financial second half, as a "large corporate partner" launches products in the first quarter of 2020.
OptiBiotix added: "Whilst there are no guarantees these will all deliver expected sales revenues, and while changes to international accounting practices (IFRS 15) may impact on the timing of reporting revenues, we anticipate further revenue growth in the years ahead as existing agreements start to generate revenues, and new agreements continue to be signed."
Separately, the company said Executive Sales & Marketing Director Christina Wood has stepped down from her position by "mutual agreement".
Recently appointed prebiotic Managing Director Fred Narbel will assume Wood's responsibilities for SlimBiome and GoFigure.
