RE: Sweetbiotix11 Sep 2024 16:59
Yes, and from that presentation is worth a re-read.
Partner agreements
The Company has been working with a wide range of industry partners since 2020 and has Material Transfer Agreements ("MTA"), and/or Non-Disclosure Agreements ("NDA"), and/or Open innovation arrangements with well-known consumer brands like Kellogg's, Nestle, Coca Cola, Cargill and more specialised sweetener and fibre groups like Tereos, Givaudan, Sudzucker, Puratos and Firmench. These agreements allow us to share information and products whilst protecting our intellectual property and partners to receive information and different SweetBiotix® products to test within their product ranges. This allows them to assess texture, taste, stability, and how they would incorporate Sweetbiotix® into their product manufacturing processes.
We developed SweetBiotix® in the laboratory and have been working on novel methods to scale up the manufacturing process to produce at industrial scale to supply large partners whilst having the same structural, prebiotic function, and taste and texture. We have been doing this through two different agreements for two different types of SweetBiotix®. These are:-
1. 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.
2. An agreement was signed with Firmenich in July 2022 to optimise scale up and development of another type of SweetBiotix®. They will pay OptiBiotix a six figure payment per market approval (USA/Europe/Asia) plus royalties and additional milestones on sales. As previously disclosed, Firmenich are one of the world leaders in taste and the world's largest stevia supplier. Their turnover is around £3.6bn per year which has risen to US $11.4bn annual turnover following their merger with DSM, and are now known as DSM Firmenich. They are experts in their field and chose SweetBiotix® after an 18 month due diligence process. This agreement with one of the leaders in the field after extensive due diligence of the science, taste, and intellectual property, is a substantial validation of the SweetBiotix® science and commercial potential.
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