Biotech group to list subsidiary separately to unlock growth potential

Stephen O'Hara

Biotech business OptiBiotix plans to list its subsidiary ProBiotix Health as part of its strategy to accelerate the growth of the company.

ProBiotix was established by OptiBiotix to develop probiotics to tackle cardiovascular disease and other lifestyle conditions which are affecting growing numbers of people across the world.

It launched ProBiotix Health as a separate business in 2018 and highlighted then that it had the potential for a separate public listing.

The group “believes that the best way to exploit the multiple opportunities offered” by its research is to have its prebiotic and probiotic technology platforms as wholly owned subsidiaries, each containing its own technology, IP portfolio and partner agreements, with potential for a separate exit.

Studies have shown that ProBiotix’s main product, LP-LDL, can reduce key cardiovascular risk markers. It has signed around 40 agreements including several with large pharmaceutical companies as it seeks to take a slice of the $60bn global probiotics market.

In a statement, OptiBiotix said: “The company believes that ProBiotix has established a strong position with its products nominated for multiple awards, excellent results from clinical studies, five-star customer reviews and growing sales delivering early profit.

“The board believe the scale of the opportunities offered by its LP-LDL are beyond those currently being exploited and may be best realised by a separate listing and fundraise.”

OptiBiotix floated on the Alternative Investment Market in 2014. But its share price has been under pressure and last night’s close of 31p valued the business at just £27m.

However it intends to raise £2.5m as it lists ProBiotix Health onto the AQSE Growth Market, which would value the division at £22.5m.

In 2021, ProBiotix reported unaudited earnings of £195,000 with total sales of £1.1m.

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