Shares in life Aim-listed sciences company Optibiotix closed up more than three per cent today, after it announced a new distribution deal covering the USA.
The company, which produces drugs and other products to tackle high cholesterol, diabetes and obesity, has signed a deal with Italian firm Sacco.
The agreement grants Sacco the exclusive license to make and supply Optibiotix's cholestorol and blood pressure reducing LP-LDL in the USA and the rest of the world outside Europe.
Optibiotix will receive half of all profits, and has agreed a minimum sales price per kilogram as well as a guaranteed cost of manufacture to ensure a return.
It is also hoped that Sacco’s experience in the food industry could help Optibiotix to expand the LP-LDL product into the dairy market, with the production of a probiotic yoghurt, drink or other dairy product.
Sacco already holds a similar contract with the company covering Europe.
Optibiotix chief executive Stephen O’Hara explained that “the ability to supply competitively priced ingredients from a single manufacturer across world markets simplifies the supply chain and contract negotiations with corporate partners”.