London-listed OptiBiotix (AIM:OPTI) has signed a licensing agreement with Velinoff Pharma to distribute ProBiotix’s patented probiotic strain LPLDL® in Bulgaria.
Under the agreement, Velinoff will promote the sale of probiotic supplements, CholBiome® and CholBiome®X3, which both contain the LPLDL® strain, under a non-exclusive licence to pharmacies, doctors and clinics across the country.
"We are pleased to announce the agreement with Velinoff which will strengthen LPLDL®'s presence in Bulgaria,” said Steve Prescott, Chief Executive of ProBiotix, the wholly-owned subsidiary of OptiBiotix.
Shares in OptiBiotix were trading flat at 42p during Thursday trading.
The deal replaces a previous agreement announced in September 2018 which saw a three year distribution agreement with an unnamed company in Bulgaria.
The life sciences group has said the new deal eliminates an intermediary in the supply chain with a shorter route to market allowing closer partner working.
With the agreement based on minimum sales volumes, ProBiotix has said this will allow us to better support Velinoff in order to grow sales.
“This is all part of the next phase of the business cycle as we renegotiate partner agreements and focus our efforts on building a profitable business,” added Prescott.
As laid out in a January trading update, LPLDL® is expected to contribute to solid revenue growth in 2020 as the company focuses on extending its range of products into new areas.
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