RCS - OptiBiotix Health - SweetBiotix® overview

OptiBiotix HealthAnnouncement

19/07/2023 07:00

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RNS Number : 4299G  OptiBiotix Health PLC  19 July 2023

OptiBiotix Health plc

("OptiBiotix" or the "Company" or the "Group")

 

SweetBiotix® overview

 

OptiBiotix Health plc (AIM: OPTI), a life sciences business developing
compounds to tackle obesity, high cholesterol, diabetes and skincare, provides
an overview of its SweetBiotix® product range in the light of recent news
interest in sweeteners.

 

Market need

The sugar substitutes market is projected to grow from USD 18.8 billion in
2023 to USD 24.3 billion by 2028, growing at a compound annual growth rate of
5.2% (Research and Markets, April 2023). Sugar substitutes taste sweet but do
not contain sugar. They have fewer calories than sugar or no calories at all
and fall into three categories: artificial sweeteners (e.g aspartame,
sucralose, saccharin), sugar alcohols (e.g. erythritol, xylitol, sorbitol) and
novel or natural sweeteners (e.g stevia, monk fruit).  Key factors driving
the industry growth are the changing consumer preference for healthier and
low-calorie foods which do not increase blood sugar and contain low or no
calories reducing the risk of obesity related lifestyle disorders such as
diabetes and cardiovascular diseases. There is also a market for direct sugar
replacement with high fructose corn syrup due to its lower costs, better
stability, and its availability in liquid form which makes it a preferred
choice in processed foods
(https://www.fortunebusinessinsights.com/high-fructose-corn-syrup-market-103273
(https://www.fortunebusinessinsights.com/high-fructose-corn-syrup-market-103273)
).

There is no ideal sweetener for all applications and use varies widely by
geography and application type.  A number of widely used sugar substitutes
have been linked to health concerns including increased blood sugar levels and
the risk of diabetes (sucralose and saccharin
 https://www.diabetes.co.uk/news/2022/aug/popular-artificial-sweeteners-found-to-raise-blood-sugar.html
(https://www.diabetes.co.uk/news/2022/aug/popular-artificial-sweeteners-found-to-raise-blood-sugar.html)
), cellular DNA damage (sucralose: see Common artificial sweetener may cause
DNA damage, cancer (medicalnewstoday.com
(https://gbr01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.medicalnewstoday.com%2Farticles%2Fa-chemical-found-in-common-artificial-sweetener-may-cause-dna-damage-cancer%23Sucralose-causes-DNA-damage%2C-cancer&data=05%7C01%7Cspohara%40optibiotix.com%7C22abe3c86a5543586cdc08db78ca896a%7Cfd9d39470fcc410da8d30ce1bec67dce%7C1%7C0%7C638236583503578275%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=3HlO44s7TgHPgFZTXGpGEtBOb8ZZ4A1krCNaj8jcln0%3D&reserved=0)
), and as possible carcinogens (aspartame:
https://www.bbc.co.uk/news/health-66057216
(https://www.bbc.co.uk/news/health-66057216) ).

This suggests there is an unmet market need for a safe, low calorie, healthy
alternative to sugar and sugar substitutes. The SweetBiotix® product
portfolio has been developed to meet that need.

Meeting the market need

OptiBiotix has developed a portfolio of novel, patented, zero or low calorie
sweet dietary fibres, called SweetBiotix®. They are unique in that they do
not have the health concerns associated with sugar, corn syrup, or sweeteners
and importantly, from a health and nutritional labelling perspective, are
classified as dietary fibres. In addition to the benefits of increasing fibre
intake, SweetBiotix® fibres have been shown to have a prebiotic effect (RNS:
20.02.19) by increasing the production of short chain fatty acids ("SCFA").
SCFAs are widely known for their importance in gut health, immunity and how
energy is metabolised in the body and are one of the main ways in which the
gut microbiome contributes to better health. This creates a clear
differentiator to other products on the market and an opportunity to replace
unhealthy sugars with healthy fibres in a range of food and beverage products
and as an ingredient in its own right.

The SweetBiotix® portfolio contains a range of products which human studies
have shown have high (240X the sweetness of sugar) to moderate levels of
sweetness (3X) to meet the needs of a wide range of application including
fizzy drinks, snacks, bakery products, dairy products and cereals. As a
general guide, the high-level sweet products could be considered a replacement
for existing sweeteners whilst the moderate level sweetness products as bulk
sugar replacement products. The strategy is designed to create multiple
opportunities which offer added value and use for a wide range of product
applications. Whist taking longer, this reduces the commercial risk which
would exist with a single product approach whilst increasing the scale of the
opportunity.

 

Product developments

OptiBiotix's products are differentiated from other natural sweeteners and
sugar substitutes on the market in that they have been developed: -

 

i.      To be classified on packaging as dietary fibres providing no
contribution to sugar intake and enhancing product nutritional labels.

ii.     Have a low glycemic index (reducing the risk of developing
diabetes).

iii.    Enhance the gut microbiome providing additional potential health
benefits.

iv.   Have intense sweetness (High Intensity Sweeteners) or sweetness
similar to sugar (depending on product).

 

The Company is not aware from patent searches and partner meetings of any
other products currently available which have these characteristics.

 

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.

 

Our products are also tested by different academic groups providing an
independent assessment of their taste and prebiotic functionality. The most
recent peer reviewed publication (see Prebiotic Potential of a New Sweetener
Based on Galactooligosaccharides and Modified Mogrosides - PubMed (nih.gov)
(https://pubmed.ncbi.nlm.nih.gov/35830712/) ) in a respected industry journal
concluded 'These substrates could be considered as novel candidate prebiotic
sweeteners, foreseeing a feasible and innovative approach targeting the
sucrose content reduction in food. This new ingredient could provide health
benefits when evaluated in human studies by combining sweetness and prebiotic
fibre functionality'.

The combination of a major industry partner with specialist expertise
investing in manufacturing scale up and verification of novelty and health
potential in a number of academic publications should give investors
confidence in the science and potential of the SweetBiotix® product range.

 

Current position

Both product types are at the end stage of manufacturing scale up with ongoing
testing of samples with both partners. This is a complex and rigorous process.
Typically, global partners with established brands require confirmation of a
robust supply chain for all ingredients (ethically and responsibly sourced)
from two different suppliers, low waste streams, humans studies/taste tests
and structural and functional analysis on liquid and freeze-dried products
from three different production runs to show there is no batch to batch
variability.  In addition, most require two year shelf life of SweetBiotix®
as an ingredient and in their final products with no observable effect on
appearance, taste, or texture or functionality.

 

We are pleased to report significant progress by both partners in the
commercial scale production of SweetBiotix®, with final product taste tested
and accepted by our US partner.  Liquid and freeze-dried products are
undergoing independent structural analysis and expert panel taste testing to
determine sweetness, off tastes, aftertastes etc when compared to sucrose and
other products.   This will determine the type of product suitable for each
type of SweetBiotix® product and the regulatory pathway before progressing to
a launch.  We anticipate most results should be returned over the summer when
we can start partner application development and launch plans.

 

Stephen O'Hara, CEO of OptiBiotix, commented: "The development of a unique
product concept within an industry is high risk, particularly in the food
industry where you are competing in an industry dominated by a small number of
large global players with demanding requirements. OptiBiotix has looked to
overcome these challenges by working closely with partners during the product
development process and believes it has created a product portfolio of sweet
prebiotic fibres, called SweetBiotix®, which meet a large and growing unmet
industry and consumer need. SweetBiotix® are unique in being classified as
dietary fibres creating the opportunity to replace unhealthy calorific and
cariogenic sugars with healthy fibres in a wide range of food and beverage
products or as an ingredient in its own right.

 

"With growing industry and consumer health concerns over traditional sugars
and sweeteners, the approaching commercialisation of the SweetBiotix® family
of products offers shareholders the potential for a significant enhancement in
the value of the Company."

 

 

For further information, please contact:

 OptiBiotix Health plc                www.optibiotix.com (http://www.optibiotix.com/)
 Neil Davidson, Chairman              Contact via Walbrook below
 Stephen O'Hara, Chief Executive

 Peterhouse Capital Limited (Broker)  Tel: 020 7220 9797
 Duncan Vasey / Lucy Williams

 Walbrook PR Ltd                      Mob: 07876 741 001
 Anna Dunphy

 

 

About OptiBiotix - www.optibiotix.com (http://www.optibiotix.com/)

OptiBiotix Health plc (AIM: OPTI), which was formed in March 2012, brings
science to the development of compounds which modify the human microbiome -
the collective genome of the microbes in the body - in order to prevent and
manage human disease and promote wellness.

 

OptiBiotix has an extensive R&D programme working with leading academics
in the development of microbial strains, compounds, and formulations which are
used as active ingredients and supplements. More than twenty international
food and healthcare supplement companies have signed agreements with
OptiBiotix to incorporate their human microbiome modulators into a wide range
of food products and drinks.

 

OptiBiotix is also developing its own range of consumer supplements and health
products. The Company's current areas of focus include obesity, cardiovascular
health, and diabetes.

 

Forward-Looking Statements

Certain statements made in this announcement are forward-looking statements.
These forward-looking statements are not historical facts but rather are based
on the Company's current expectations, estimates, and projections about its
industry; its beliefs; and assumptions. Words such as 'anticipates,'
'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar
expressions are intended to identify forward-looking statements. These
statements are not guarantees of future performance and are subject to known
and unknown risks, uncertainties, and other factors, some of which are beyond
the Company's control, are difficult to predict, and could cause actual
results to differ materially from those expressed or forecasted in the
forward-looking statements. The Company cautions security holders and
prospective security holders not to place undue reliance on these
forward-looking statements, which reflect the view of the Company only as of
the date of this announcement. The forward-looking statements made in this
announcement relate only to events as of the date on which the statements are
made. The Company will not undertake any obligation to release publicly any
revisions or updates to these forward-looking statements to reflect events,
circumstances, or unanticipated events occurring after the date of this
announcement except as required by law or by any appropriate regulatory
authority.

 

 

 

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