Launch of Dr Morepen LightLife in India

OptiBiotix Health plc (AIM: OPTI), a life sciences business developing compounds to tackle obesity, high cholesterol, diabetes and skincare, announces the upcoming launch of multiple SlimBiome® containing products under Dr Morepen's ("Morepen") newly developed LightLife brand in India. This is being supported by a £1.5million+ marketing investment and follows on from the partnership agreement signed with Morepen in March 2024 for the sale of SlimBiome® containing products in India.

Dr Morepen Ltd is a 100% owned subsidiary of Morepen Laboratories Ltd ("Morepen Laboratories"), an Indian pharmaceutical company listed on the Indian Stock Exchange. Morepen Laboratories has more than 2,300 employees and sells over 800 products to over 82 countries. Morepen is a well-known and trusted brand in India, launched in 2001 to encourage customers to be in charge of their own health and wellbeing. Morepen has direct access to over 200,000 pharmacies across India and indirect access to another 300,000 pharmacies. Products will be sold online, in pharmacies, and direct to physicians across India.

Morepen's launch will include five flavoured variants of SlimBiome® containing sachets and a meal replacement with further products to be added during Q1 2025 and throughout the year. The LightLife brand will be positioned as India's first 360° weight management plan. As part of this launch, Morepen will be providing personalised nutrition plans, expert nutrition and expert fitness counselling which will be available to LightLife consumers via a newly developed app. This has been designed to offer support to consumers throughout their weight loss journey by offering free app videos and content with specifically tailored plans for individuals.

This is the first time OptiBiotix has co-invested in marketing with a partner on this scale and includes a significant and comprehensive marketing plan and budget of £1.5m+. This will include significant use of influencers, PR, and numerous digital marketing activities and strategies with the aim of rapidly gaining a significant market share. The products will be sold on Morepen's website, across all major online ecommerce platforms in India and will be available in 5,000+ pharmacies across all key cities in India within the first year of launch.

Obesity is a significant and rapidly growing issue across India, expected to worsen as India's middle class continues to grow. According to the Indian National Family Health Survey (NFHS-5) 2019-2021, around 23% of Indian men and 24% of Indian women are overweight or obese, leading to cardiovascular, diabetes, respiratory and knee joint health issues. Morepen estimate the target market for LightLife in India to be approximately 197 million adults.

Revenues will be both generated through raw material sales of SlimBiome® to our contract manufacturer KAG Industries (RNS: 30 April 2024) and as a second larger revenue stream for the finished product sold direct to Morepen.

Stephen O'Hara, CEO of OptiBiotix, commented: "Morepen is an established, well known, and trusted brand and this launch represents a material step forward for the Company's products in the Indian market. This initial launch will involve six products with subsequent launches at the start of 2025.

"Based on Morepen's current forecasts, this agreement could contribute in the region of £6-7 million revenue per annum to OptiBiotix in the next four to five years. The partnership has the potential to make a significant financial impact to the Company. We are very excited to announce the upcoming launch and look forward to seeing the progress following the investments Morepen has made in marketing, product development and in supporting customers to reach their weight management goals. We are pleased to be part of such an innovative approach which sets a new benchmark for the weight management industry."

Varun Suri, CEO of Dr Morepen commented: "We see the partnership between Dr. Morepen and OptiBiotix as an important one and have high regard for the success OptiBiotix enjoys globally because of the science and functionality of the ingredient and trust in their brand. The upcoming launch of LightLife will be a first of its kind product in the Indian market and we have designed the products and the brand ethos to create a successful business and brand. The strategy teams, the PR partners and OptiBiotix India are all working in tandem to position the brand and the product as the most relevant in the lifestyle category of healthy weight management. We have top quality products with applications that complement the lifestyle of an urban Indian consumer and are excited for its future."