OptiBiotix ("OPTI") recently announced a number of new commercial agreements for marketed functional food ingredients SlimBiome and LP-LDL. These new agreements take the number of commercial deals for both products to 57 and include a mixture of new distribution and manufacturing agreements, not only increasing the number of countries where products containing OPTI's ingredients are sold to over 70, but are also anticipated to improve profitability through the renegotiation of manufacture deals which provide OPTI with greater control over the value chain. OPTI's ability to continue to sign commercial agreements despite the ongoing disruption related to the COVID-19 crisis is impressive, in our opinion, and the company continues to build momentum in a year when we expect existing agreements to start generating substantial revenue streams. We maintain our OUTPERFORM recommendation, trimming our target price to GBp 93 (from GBp 97).
