RCS - OptiBiotix Health - SweetBiotix Update

OptiBiotix HealthAnnouncement

30/01/2024 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240130:nRSd2688Ba&default-theme=true

RNS Number : 2688B  OptiBiotix Health PLC  30 January 2024

OptiBiotix Health plc

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

 

SweetBiotix® Update

 

OptiBiotix Health plc (AIM: OPTI), a life sciences business developing
compounds to tackle obesity, high cholesterol, diabetes and skincare, provides
an update to its SweetBiotix® product range following its overview in 2023
(RNS Reach: 19 July 2023).

 

Market update

The Company reported in 2023 that the sugar substitutes market is projected to
grow from USD18.8 billion in 2023 to USD24.3 billion by 2028 and of the health
concerns associated with a number of sugar substitutes. These health concerns
included increased blood sugar levels and the risk of diabetes with 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  with sucralose 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 aspartame as a possible carcinogen
https://www.bbc.co.uk/news/health-66057216
(https://www.bbc.co.uk/news/health-66057216) . More recent studies have shown
a link between artificial sweeteners and a 9% increased risk of cardiovascular
disease (including heart attacks) and 18% greater risk of stroke Sugar
substitutes: New cardiovascular concerns? - Harvard Health
(https://www.health.harvard.edu/heart-health/sugar-substitutes-new-cardiovascular-concerns)
.

 

Health concerns over sugar substitutes have been known to the scientific
community for a number of years (see 2011 report  Sugar substitutes: Health
controversy over perceived benefits - PMC (nih.gov)
(https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3198517/) ) and the lack of safe
alternatives were the motivation behind the development of the SweetBiotix®
portfolio.  However, these concerns did not impact materially on consumer
choice until the publication of reports by the World Health Organisation (WHO)
and others in 2023. This created widespread media interest and brought the
health issues associated with sugar substitutes to the attention of mass
consumers around the world. This has led many companies to start to implement
new approaches to their products PepsiCo Nutrition Philosophy | PepsiCo
HealthandNutrition (pepsicohealthandnutritionsciences.com)
(https://www.pepsicohealthandnutritionsciences.com/pepsico-nutrition-philosophy)
.

 

In the last six months, there have been consumer concerns over sugar
substitutes which has translated into existing and potentially new industry
partners (including PepsiCo) discussing the use of natural, safe sugar
substitutes like SweetBiotix® for both new and existing products. In
anticipation of this need, OptiBiotix initiated development of its own
finished product brands containing natural sugar substitutes and flavourings
in mid-2023. The Company believe that natural products will be an increasingly
common requirement throughout 2024 both in existing and new products. In
recent months, products have been developed and successfully taste-tested with
natural sweeteners for a large US company and a large Indian pharmaceutical
company.

 

This has heightened commercial interest in the SweetBiotix® product range as
a safe, low calorie, healthy alternative to sugar and sugar substitutes.

 

Current position

The Company has developed SweetBiotix® products to meet the needs of a number
of industry partners and well-known global consumer brands. These products
have been tested by academic groups who have published their findings in peer
reviewed journals providing an authoritative and independent assessment of
SweetBiotix's® taste and prebiotic functionality (see Prebiotic Potential of
a New Sweetener Based on Galactooligosaccharides and Modified Mogrosides -
PubMed (nih.gov) (https://pubmed.ncbi.nlm.nih.gov/35830712/) ).  The
remaining challenge was developing approaches to scale up laboratory methods
to an industrial scale without impacting on function, taste, and texture. This
was actioned for two different types of SweetBiotix® with a US partner in
September 2020 and Firmenich in July 2022. The agreement with Firmenich, one
of the world leaders in taste and the world's largest stevia supplier, was
particularly encouraging as it followed extensive due diligence of the
Company's IP, science, the products taste and texture and commercial potential
by a partner who specialises and leads in this field. Industry validation by a
partner specialist in this field and product verification by scientific
experts in peer reviewed journals should give investors confidence in the
commercial potential of these products.

 

The Company can report significant progress by both partners in the commercial
scale production of SweetBiotix®, in line with the Company's hopes and
expectations, with final product taste tested and accepted by our US partner.
Expert panel testing of the scale manufactured product has shown comparable
taste and texture when compared to the laboratory product. Manufacturing scale
up with Firmenich slowed during and after their merger with DSM, as
anticipated, but resumed in late autumn 2023 as Firmenich moved manufacturing
scale up from its contract manufacturer to DSM's in-house manufacturing
facilities. Ongoing discussions indicate strong partner support on increasing
the anticipated scale of production and supply given the enlarged group,
DSM-Firmenich, now have access to global manufacturing and distribution
capability.

 

Given recent progress, the Company's focus has moved on from manufacturing
scale up to engaging with commercial partners to launch products. Discussions
are ongoing but are likely to involve a phased introduction of SweetBiotix®
products as a direct bulk sugar substitute and then introduced into
OptiBiotix's and partners consumer products across an increasing range of
applications. With growing consumer and industry concerns over traditional
sugars and sweeteners, the Company is in a strong position to exploit its low
calorie, high fibre SweetBiotix® products as a safe, natural and healthy
alternative to sugar and sugar substitutes.

 

Stephen O'Hara, CEO of OptiBiotix, commented: "Consumer concerns over sugar
and the safety of several sugar substitutes have materialised into companies
reformulating existing and/or launching new products containing natural, safe,
and healthy alternatives. The Company believes its sweet, high fibre, low
calorie, prebiotic fibre SweetBiotix® products are ideally positioned to
launch at a time when many companies are actively looking for a natural
alternative to meet this need. SweetBiotix® are unique in being classified as
dietary fibres creating the opportunity to replace unhealthy calorific and
cariogenic sugars, or sugar substitutes with healthy fibres in a wide range of
food and beverage products or as a sugar replacement in its own right.

 

"The Company has developed novel science, protected its commercial interests
with a broad IP portfolio, has SweetBiotix®'s taste and texture and/or health
potential confirmed independently by industry partners and in academic
publications, and formed partnerships with a number of industry partners.
These include DSM-Firmenich who have specialist expertise in taste and
texture, manufacturing capability, and a global distribution network. Our US
partner has shown SweetBiotix® can be manufactured to scale. Given the size
of the challenge and considering the food industry is dominated by large
global players with significant R&D capabilities this is a significant
achievement for OptiBiotix. The focus now is on leveraging this position to
fully exploit the market opportunity open to us and bring products containing
SweetBiotix® to market.  This is the focus of 2024."

 

 

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.

 

 

 

This communication is a "Reach" announcement. Reach is a non-regulatory news
service. By using this service an issuer is confirming that the information
contained in this announcement is of a non-regulatory nature. Information
required to be notified under the AIM Rules for Companies, Market Abuse
Regulation or other regulation would be disseminated as an RNS regulatory
announcement and not on RNS Reach.

This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  NRABLGDBBSDDGSC