OptiBiotix inks deal on cholesterol-reducing bacteria

Though being vague on terms, and not naming the collaboration partner for a new licensing deal, UK life sciences firm OptiBiotix Health (AIM: OPTI) saw its shares, which had already risen 72% in the year to date, gain a further 6.5% to 105.97 pence by early afternoon trading today.

OptiBiotix revealed it has entered into an agreement with a US company for the use of its cholesterol reducing Lactobacillus plantarum strain as a pharmaceutical drug product.

The agreement grants the US firm an exclusive license in return for it taking responsibility for all development, pre-clinical and human clinical testing, regulatory filings and approvals, product manufacture, marketing, and product sales in the US therapeutics market. OptiBiotix will be responsible for the manufacture of its Lactobacillus plantarum strain to pharmaceutical drug standards. The US company has an option, conditional on certain development milestones and further payments, to obtain a worldwide license (excluding India and Pakistan) under the same conditions.