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(Alliance News) - OptiBiotix Health PLC on Thursday said its wholly-owned subsidiary ProBiotix Health Ltd has signed a licensing agreement with Bulgarian pharmaceutical marketing company Velinoff Pharma Ltd.
Shares in OptiBiotix were down 14% at 36.00 pence each on Thursday afternoon in London.
The agreement will see Velinoff will promote the sale of CholBiome and CholBiome X3 under a non-exclusive licence to pharmacies, cardiologists, general practitioners, and cardiologic clinics in Bulgaria.
CholBiome is a supplement containing LPLDL, which is OptiBiotix's probiotic strain intended to reduce cholesterol and blood pressure.
"We are pleased to announce the agreement with Velinoff which will strengthen LPLDL's presence in Bulgaria. Velinoff was chosen as our partner because they bring local expertise and a dedicated sales team to promote the sale of CholBiome and CholBiome X3 in the Bulgarian market," said OptiBiotix Chief Executive Steve Prescott.
In 2018, the the UK life sciences company said it signed a three-year distribution agreement with an undisclosed Bulgarian pharmaceutical and foods supplements distribution company, granting the Bulgarian company exclusive distribution in return for local product registration and three year sales targets to retain exclusivity.
However on Thursday, ProBiotix said the new licensing agreement replaces the agreement signed in 2018, adding that the agreement with Velinoff eliminates an intermediary in the supply chain providing a shorter route to market and allowing closer partner working.
"The change to this agreement removes a sales intermediary allowing us to better support Velinoff to grow sales. This is all part of the next phase of the business cycle as we renegotiate partner agreements and focus our efforts on building a profitable business," Prescott added.
The financial details of the deal with Velinoff was not disclosed.
By Ife Taiwo; ifetaiwo@alliancenews.com
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