ProBiotix Health plc

("ProBiotix" or the "Company")

Commercial and scientific update

ProBiotix Health plc (AQSE: PBX), a life sciences business developing probiotics to tackle cardiovascular disease and other lifestyle conditions, provides an update on recent scientific and commercial activities: -

1.    Commencement of employment of Steen Andersen as Chief Executive Officer (CEO) of ProBiotix: The Company announces that Steen Andersen joined ProBiotix as CEO on 2 January 2023. Steen brings 30 years' experience in building businesses in the probiotics industry, having been President of Deerland Probiotics and Enzymes, President and CEO of Bifodan, President and CEO of Fluxome, and Vice President of Human Health at Chr. Hansen. ProBiotix believes that Steen's industry reputation, network of contacts, experience and track record of growing sales and profitability will help accelerate the growth and recognition of ProBiotix into 2023 and beyond. 

2.    Commercial Activity 2022:  The Company reports that 2022 has been a year of continued strong growth for ProBiotix with existing customers increasing sales, new customers in Belgium, USA, Spain, South America, Hong Kong, Israel and Germany contributing revenues for the first time, e-commerce sales doubling, and growing sales in dairy. A detailed trading update will be provided in the next few months.  

3.    Growing product range in dairy: The Company reports growing interest in the use of LP_LDL® in dairy following the launch of Yo-Life® with our partner Granja Pocha in Uruguay. The launch of Yo-Life® represented a significant milestone for the Company as it extended the use of LP_LDL® into functional dairy foods with a health claim ("helps reduce cholesterol"). Following the launch of Yo-Life®, we have seen increased use of LP_LDL® in other dairy products with the launch of spreadable cream, a drinking yogurt, a Greek yoghurt starter culture in the USA, and a creamy herb cheese in Canada. Of particular interest is the increased evaluation and use of  LP_LDL®  by large partners looking at plant based alternatives to dairy, where LP_LDL® appears to improve the taste and texture of plant based dairy alternatives in addition to cholesterol reducing benefits. The use of LP_LDL® in food products such as dairy/dairy alternatives is of strategic interest as it opens up markets where volumes and sales are significantly higher than the dietary supplement industry, with potential for substantive growth.

4.    Commercial Activity 2023: The Company reports early indications for 2023 show another year of strong growth including the potential for:-

a.    Extension of product ranges and territories with the Company's two largest partners, AlfaSigma and Seed Health. 

b.    The launch of CholBiome® products in Brazil with Ayalla, following an 18 month registration period, with a health claim for cardiovascular health. The Company believes that LP_LDL® will be the first probiotic strain ever to be registered in Brazil for cardiovascular health, with first-mover benefits and strong interest from the pharmaceutical industry.

c.     New product launches in Hong Kong, Germany and on TMAll in China.  A number of these from companies who have already placed orders with delivery in 2023.

d.    One or more agreements with large US partners creating the opportunity for substantive revenue growth.  This will be supported by the expansion of our CholBiome® range with a phytosterol-containing product with US health claims.

e.    Continued strong growth in e-commerce sales with anticipated revenues of £250K to £500K

5.    Scientific Update: The Company continues its scientific studies to support sales and marketing efforts with scientific presentations and publications and developing the product pipeline. This can be through exploring new probiotic strains and/or extending the applications and use of LP_LDL®. Current studies include human studies investigating the impact of LP_LDL® on sleep, stress, and anxiety, and the reduction of cholesterol in coeliac disease. Sleep aids and stress management products are the fastest growing category within healthcare (Goldstein Market Intelligence, 2020) and this is another step in extending the range of applications for our scientifically and clinically proven products into large growing markets where there is an unmet clinical need.  The Company has had three abstracts accepted for presentation as posters and/or oral presentations at ProBiota in February 2023.

6.    Corporate: The Company aim will continue to work with AQUIS and explore opportunities on other markets, including AIM, to increase liquidity in ProBiotix shares.

The Company sees 2023 as a year of opportunity and continued growth and operational profitability, with a focus on commercialising products across more territories, particularly the USA with larger partners, and increasing the proportion of final product to ingredient sales to partners and via our e-commerce platform.  This will be supported by a developing product pipeline with new probiotic strains and extending the applications and use of LP_LDL® into new areas, all supported by strong science and human studies.   

The scale of the market opportunity in probiotics is large, particularly outside the traditional gut health and health and wellbeing markets, where growth is slowing. This is increasing interest in ProBiotix and its products from larger partners looking to sustain future growth. The proven safety and efficacy of our products, the substantial scope for expansion of our range and geography, and the appointment of a proven commercial industry leader, allow us to look to 2023 with confidence and enthusiasm.

Stephen O'Hara, Director of ProBiotix, commented: "The recruitment of Steen Andersen as CEO to ProBiotix brings in an established industry figure to lead the Company into its next stage of development.  

"With growing sales, operational profitability, and a clear strategic focus on growing the business by commercialising ingredients and final products across more territories and more application areas with existing and new partners, we look forward to 2023 with great confidence and excitement. We thank our investors for their continued support and look forward to building a valuable and profitable business."

This announcement contains information which, prior to its disclosure, was considered inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

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Save as set out below, there is no further information regarding Steen Dannemann Andersen (age 59) that is required to be disclosed pursuant to Rule 4.9 of the AQSE Growth Market Access Rulebook.