Manufacturing agreement with KAG Industries

OptiBiotix Health plc (AIM: OPTI), a life sciences business developing compounds to tackle obesity, high cholesterol, diabetes and skincare, announces that its wholly owned Indian subsidiary, OptiBiotix Health India Private Limited ("OHI"), has signed a manufacturing agreement with KAG Industries ("KAG") for the supply of Slimbiome® containing products ready for sale. KAG have developed five flavours unique to the Indian market which will be sold by OHI to Dr Morepen, a well-known brand in India, launched in 2001 to encourage customers to be in charge of their own health and wellbeing.

KAG is a specialised contract manufacturer of nutritional powders with its own research and development laboratories allowing it to create customised finished products for its clients. These include well known international companies like Unilever and well known and trusted Indian brands like Apollo and Dr Morepen. These clients require a high level of food industry accreditation including HACCP, GMP, FSSC 22000 certification. Zeon Lifesciences Ltd will manufacture and supply the SlimBiome® in Dr Morepen products, creating a local manufacturing and sales base for ingredient and finished product. This would not be possible without having a physical presence in India.

With a population of 1.4 billion people and obesity prevalence at 40.3% (https://journals.sagepub.com/doi/full/10.1177/0972753120987465), India is a market of strategic importance to OptiBiotix. The middle-class population in India is expected to reach 475 million by 2030. Currently most middle-class consumers live in the European Union (EU) and the United States, but over the next decade, the majority will shift heavily toward India, with one in four global middle-class consumers expected to reside in India by 2035 (https://www.asianstudies.org/publications/eaa/archives/the-middle-class-in-india-from-1947-to-the-present-and-beyond/) representing a significant growth opportunity.

The appointment of KAG brings another well respected and established provider into the supply chain within India.

Stephen O'Hara, CEO of OptiBiotix, commented: "We are pleased to announce this agreement with KAG to support the launch of SlimBiome® containing products with Dr Morepen, a well-known and trusted supplier to pharmacies, physicians, and retail customers across India. We look forward to the upcoming launch of products across India with Dr Morepen and our manufacturing partners."

Anuj Agarwal, Chairman & Managing Director of KAG Industries, commented: "Dr Morepen boasts a rich legacy of over three decades, renowned for its expertise in developing reliable health products tailored for the Indian market. The collaboration between KAG, OHI and Dr Morepen signifies a promising endeavour, aiming to create mutually beneficial outcomes for all involved parties."

The Directors of the Company are responsible for the release of this announcement.