With fast-growing sales and operating in the all-important life sciences sector, we have a virtual sit-down with OptiBiotix Health (OPTI) who is looking to continue its international growth trajectory. Besides the core business of OPTI, investors will also note that OPTI has a large holding in AIM high-flyer Skin BioTheraPeutics (SBTX) which has soared over 160 percent so far this year.
Firstly, tell us a bit about your business and its value proposition
OptiBiotix Health plc is developing a range of products which modify the human microbiome (the collective genome of the microbes in the body), to prevent and manage human disease. This targets a global market of strategic interest to pharma, food, and ‘health and well-being’ companies, which is forecast to become one of the world’s fastest growth areas in the next 10 years with an average CAGR between 2019-2024 of 22.6%, and described by health experts as “healthcare’s most promising and lucrative frontier” (Mordor Intelligence, 2019).
OptiBiotix launched its first products just over 3 years ago targeted at chronic lifestyle diseases (obesity, diabetes, heart disease). These are large markets where existing products suffer from lack of efficacy or tolerance issues leading to poor compliance. OptiBiotix products have published clinical studies in peer reviewed journals by key opinion leaders and have won multiple science and industry awards and are receiving 5 star customer reviews. This has led to rapid international growth (160 countries in 3 years) and doubling year on year sales.
The current climate is presenting challenge and opportunity – how has this applied to the business?
Despite a challenging year in 2020, OptiBiotix more than doubled sales (103%), reduced expenses by 27.8%, and increased product margins by 5% in 2020. The Company is in a strong position with increasing sales and improving margins complemented by a large reduction in costs, demonstrating the scalability of the business model as it enters 2021.
Growth catalysts are crucial to business growth – what do you believe yours are?
- Growing consumer interest in the gut health and microbiome
- Growing consumer interest in health and wellbeing
- Growing understanding of the value of science
- Increased sales in key strategic markets (USA and India)
What are the biggest headwinds you foresee to growth in the coming months?
We have more demand than capacity. We currently have over 100 ongoing partner discussions and a small team. Having more people to deal with growing demand is currently the greatest limitation on growth.
Imagine you find yourself in a lift with Warren Buffet, what would your elevator pitch to summarise why he should invest in your business?
OptiBiotix is world leading in one of the most exciting areas of healthcare innovation, with clinically proven award winning products addressing major chronic lifestyle diseases (obesity, diabetes, heart disease). The company is now rapidly growing revenues with a global partner network of 80 partners commercialising multiple products in multiple territories (160) and has a low investor risk profile with multiple upside opportunities. With investor and consumer interest in the microbiome and health and wellbeing growing trend, the market opportunity is large and expanding, creating potential for a large upside. OptiBiotix offers potential investors the opportunity to participate in this growing market opportunity to support the company in its rapid growth and continue to develop its pipeline of applications, products, and territories to capitalise on this unique opportunity.
OptiBiotix also has a large stake (22.3%) in another AIM company, SkinBiotherapeutics (SBTX) which is a rapidly growing asset proving further upside potential.
Please note: this interview with OptiBiotix Health forms part of the ShareBuyers’ going for growth series. This series allows companies big and small to share their growth story with retail investors.
OptiBiotix Health currently has a m.cap of £43m.