A conversation with OptiBiotix Health CEO Stephen O'Hara was conducted by Elric Langton. Opinion and summary comments by Alex Langton.
7 September 2023
Alex has a financial interest in OptiBiotix Health.
Introduction: In a candid conversation with the editor-in-chief and my father, Elric Langton, Stephen O'Hara, CEO of OptiBiotix Health, delves deep into the company's performance, strategies, and future prospects. As the microbiome industry evolves, OptiBiotix stands at the forefront, navigating challenges and capitalising on opportunities. During the conversation, we look at the company's difficult and turbulent journey and what lies ahead for potential investors.
Summary: Stephen O'Hara paints a picture of a company that has faced its fair share of challenges but remains resilient and forward-looking. The past few years have seen OptiBiotix navigating the complexities of the microbiome industry with a focus on probiotics, prebiotics, and skincare. This is an evolving area of healthcare with new science and opportunities in which not all companies in this space, for example, 4D pharma and UBiome, have survived. The company's strategy of diversifying its portfolio and expanding into different areas of the microbiome has been met with both successes and setbacks.
A significant point of discussion was the company's venture into SweetBiotix, a novel sweet fibre. While the product holds promise, its uniqueness has meant the journey to market has been marked by significant technical, scientific, and manufacturing challenges, of which the majority have now been overcome.
Partnering with global giants like DSM/Firminech, OptiBiotix is poised to make significant strides in this space; a critical event eagerly awaited by investors could shine a bright light on the company and, by doing so, attract new investors.
DSM, a Dutch health and nutrition powerhouse, has joined forces with the Swiss flavour and fragrance giant Firmenich International. Together, they boast a formidable presence with 30,000 employees across 340 locations in 60 countries. Their combined valuation is a staggering $131 billion, with an annual turnover surpassing $16 billion. This merger significantly amplifies their potential in the probiotics market, which was valued at approximately $58 billion in 2022 and is projected to soar to over $85 billion by 2027.
The merger between DSM and Firmenich has significantly boosted OptiBiotix's capabilities, providing them unrestricted access to ingredient manufacturing and distribution channels and enabling bulk scale-up of several SweetBiotix versions.
However, it's not just about product development. O'Hara emphasises the importance of understanding the nuances of the market, from navigating Dutch employment laws to understanding the intricacies of accounting provisions. The company's approach to risk, partnerships, and global expansion offers insights into its vision and commitment to growth.
The conversation also touched upon the potential of microbiome modulators, a promising avenue that could redefine health solutions. O'Hara explains that these modulators could be pivotal in addressing various health concerns, from obesity to dementia to cancers.
The Q&A starts with a brief overview.