We are pleased to make available a research note from Peterhouse Research on OptiBiotix Health:
OptiBiotix Health PLC (OPTI) has established a pipeline of microbiome modulators that can impact on lipid and cholesterol management, energy harvest and appetite suppression.
Results from a clinical trial on cholesterol reduction should be available in the final quarter of 2015. This product concept is a 'must-have' for major players in functional food, and OPTI recently signed a placeholder option agreement with a multinational consumer goods company.
The main research programme is to build an OptiBiotics platform and develop novel 'oligosaccharides' as 'microbiome modulators'. The target is to fuel the growth of a proprietary microbial strain/s to help modulate population surges in 'good' gut (or other localised) bacteria and derive well-evidenced health benefits - potentially a market in excess of $1bn.
OPTI is a virtual company, focusing on its R&D whilst out-sourcing clinical trials, manufacturing and downstream activities. The aim is to license its product and microbial strain IP, or have product supply agreements with appropriate partners, in order to develop a robust royalty income stream.
A preliminary sales- and royalty-based model suggests a DCF valuation up to £50m, nearly twice the current market cap. Positive news and a future differentiated OptiBiotic portfolio with multiple disease-specific products could achieve a multiple of this.