OptiBiotix Health plc (AIM:OPTI ) has announced a contract manufacturing agreement with Fipros A/S in Denmark.
Fipros (www.fipros.dk) is a Danish contract manufacturer founded in 1992 with operations in Sweden and Denmark. The terms of the agreement grant Fipros the rights to utilise OptiBiotix's IP to manufacture SlimBiome® under licence.
The agreement creates a source of supply within the European Union and has been entered into as part of the Company’s strategy to de-risk the Company’s supply chain in case of a ‘hard Brexit’. Manufacturing within the EU will support the commercial launch of SlimBiome® in Poland and Germany as previously announced.
Shares in Opti traded up 7% following the announcement.
Dr. Fred Narbel, Managing Director of OptiBiotix's prebiotics division, commented: "We are very pleased to work with Fipros to manufacture SlimBiome® within the European Union. The agreement is key as it helps us lower the cost of trade, support our existing and future European distributors and build contingency in the supply chain which is a key requirement from large commercial partners who do not want to be single-sourced. In addition, Fipros has a Certification and Accreditation Administration of the People's Republic of China (CNCA) registration thus enabling us to fast track future possible exports to China."