‘Significant progress’ for life sciences business Optibiotix

Optibiotix says it has made “significant progress” developing a pipeline of innovative products in the first half of the year as it evolves from a technology company to a product firm, following the flotation of its skincare-focused subsidiary and investment in a weight loss business.

For the six months ended May 31, 2017, the York-based life sciences business reported a profit after tax of £3.2m following the listing of Skinbiotherapeutics, its skincare-focused subsidiary.

The company said the income statement includes an adjustment of £4.1m for the change in value of the investment in Skinbiotherapeutics following the listing.

After accounting for the adjustment, the operating loss for the period was £0.98m (2016: £0.71m). The increase in loss reflects the inclusion of the first set of six monthly results for The Healthy Weight Loss Company and Skinbiotherapeutics, the company said.

“Following the listing of SkinBiotherapeutics whilst we have to account for our share (41.9%) of future profits or losses, as this is an accounting adjustment, there is no impact on OptiBiotix group cash balance,” the group said.

“Cashflow remains tightly controlled with a focus on building shareholder value through investment in R&D, IP and in-licensing opportunities. The group’s cash position remains strong which is sufficient to cover the delivery of existing development and commercial plans.”

Optibiotix was founded in March 2012 to develop compounds which modify the human microbiome to combat diseases. It has been moving towards the commercialisation of products as part of its R&D programme.

Stephen O’Hara, CEO of OptiBiotix, said: “OptiBiotix has made significant progress in the last six months developing a pipeline of innovative products with a strong scientific and clinical evidence base.

“This has stimulated industry interest from both national and multinational companies in selling our products in both consumer health and pharmaceutical markets around the world. The microbiome has been described by commentators as healthcare’s ‘most promising and lucrative frontier’.

“As OptiBiotix’s microbiome modulating platforms generate products and multiple revenue streams from royalties and supply agreements, there is potential for a significant enhancement in the value of the company. Finally, we are pleased with the admission of Skinbiotherapeutics to AIM in April 2017, generating a £4.1m return on our initial investment.  I would like to thank our investors for their support, and look forward to an exciting and rewarding rest of 2017.”