RE: RNS out18 Jul 2019 08:37
Online distribution agreement for SlimBiome(R) Medical
OptiBiotix Health plc (AIM: OPTI), a life sciences business developing compounds to tackle obesity, cardiovascular disease and diabetes, announces it has signed an agreement with BioEnergiser Ltd. ("BioEnergiser") for the online distribution of SlimBiome(R) Medical in the UK. SlimBiome(R) Medical is a CE marked medical device which independent clinical studies show reduces hunger, cravings for sweet and savoury foods, and fat intake. These functionalities help people who consume SlimBiome(R) Medical to modify the type and amount of food they eat, helping them to moderate their calorie intake and achieve sustainable weight loss.
The agreement grants BioEnergiser rights to distribute SlimBiome(R) Medical online within the UK whilst allowing OptiBiotix to continue to sell the product on its online store (Optibiotix.online). This agreement provides market exclusivity linked to minimum sales orders to be agreed after a review of sales, pricing, and future forecasts, six months after signing this agreement.
Founded in 1985, BioEnergiser is an established UK sales and marketing company specialising in consumer goods supplying retail, mail order, direct to TV and home shopping channels. BioEnergiser bring expertise in direct to consumer sales and marketing through mainstream digital and satellite TV and radio commercials, and advertising in national newspapers and magazines. They have a track record of rapidly growing online sales with a recent product launch approaching GBP1.6m sales within the first year. Whilst there is no guarantee sales performance with other products can be replicated with SlimBiome(R) Medical we believe this demonstrates BioEnergisers experience in quickly building online sales in the healthcare market. BioEnergiser's commitment to consumer marketing is evidenced by their spend across their product range in print media alone of GBP5.1m in 2018.
This agreement is a strategic step to take OptiBiotix's own label product (SlimBiome(R) Medical) direct to the UK consumer to enhance their online consumer health presence. This strategy helps build brand awareness, complementing any potential launch of products with major retailers, and creates demand for its functional ingredients (SlimBiome(R) and LP(LDL) (R)) in a wide range of products across the world.
Dr. Fred Narbel, Managing Director of OptiBiotix's prebiotics division commented: "We are pleased to announce this deal with BioEnergiser to distribute SlimBiome(R) Medical online in the UK. This is a significant and exciting step in accelerating the growth of OptiBiotix consumer health division. BioEnergiser's expertise in direct to consumer online sales and marketing will help build brand and consumer awareness of SlimBiome(R) Medical through TV and national newspaper advertising, complementing any potential future retail launch. The deal brings further value by providing us with economies of scale and will support
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