OptiBiotix Health New Zealand Partner – PharmaBiota
On Thursday 30th May I had a rather long chat with Peter Lagan, CEO of New Zealand based PharmaBiota. Peter discussed his background in the pharmacy, his passion for probiotics, something Peter had put off developing for 15 year due to other projects. The the probiotic fire was stoked when he hooked up with OptiBiotix Health (OPTI) at the Berlin Porbiota nutritional conference in 2017. He watched with interest CEO of OPTI, Stephen O'Hara delivering the LP-LDL abstract. It's clear from the conversation Peter feels the prebiotic and probiotic markets are going to be significant drivers in human health. Peter's passion for the nutritional health benefits was very evident, he spoke at great length about his experience and looks to the future with excitement.
Q: Pete, can you explain to me how you became involved with OPTI, you are after all from the Southern Hemisphere. A: As pharmacist with 35 years interest in health supplements and in probiotics for the last 15 years, I saw SOH at Berlin Probiota conference in 2017. SOH's delivering the LP-LDL abstract and afterward discussing one on one, impressed me greatly.
Q: We are now approaching a year since the agreement, so naturally I'm wondering what the process is and if you are on schedule to launch of your cholestero-Biota A: There had been a delay in launch as I have been busy, being busy. The final formulation wasn't formalised until November, some time after the initial agreement. Peter stressed this was not OPTI's fault, but due in part to business commitments and in part the as NZ regulatory body Medsafe whom were keen to ensure it was a dietary supplement ( and not a medicine ). With an effective product it is sometimes a fine line between it having medical actions and not making claims to those actions overtly.
Q: When can we expect the products to be publicly available A: We took delivery of the products end of April. We are now in the process of a client (pharmacists) B2B marketing campaign, which I will keep low key initially and have the market driven from pharmacist to consumer rather than the reverse . The products are in the market now, it's been with the wholesaler for the past week. We are finalising promotional documentation.
Q: Does the NZ regulatory protocol , if categorising LP-LDL as a medicine, make it more expensive than OTC supplement A: Yes, it is hugely more expensive. Currently , however to sell over the counter LP-LDL. We aim for a $1 a day whereas you get state subsidised medicines for $5 for 90 days supply. If you are making a claim (medical) straight away legislative costs would make it unrealistic.
Q: Can you confirm your products will be an OTC dietary supplement A: Yes, and I will encourage pharmacists and senior pharmacy staff to oversee the initial sales
Q: As well as offering different doses, do you plan to have a combi products for Cholesterol and Hypertension A: This would be difficult regulatory hurdle to target hypertension and as mentioned , any medical claims are not allowed unless you license as a medicine. NZ has tough regulatory structures. (I think Peter was suggesting this is claiming for hypertension is not on the immediate horizon because he has enough with existing products. Cholesterol “support” however is a softer target).
Q: What level of sales volume are you anticipating in the first 12 months A: It is very difficult to gauge the level of interest at an early stage. There could be a slower take up, not the quick “honeymoon” stage as there often is with new glossy magazine advertised products. The LP-LDL will become more established due to effectiveness, patient acceptance and word of mouth. We are looking long term effectiveness. (This is of course consistent with SOH stance on guesstimating sales for new products with new science in new markets).
Q: I believe your market is primarily New Zealand & Australia, but I also believe you have a health and well being business in Singapore. Are there any plans to offer your LP-LDL products in other territories or does your license with OPTI restrict this. A: Singapore is not me. Primary market is NZ and am planning to launch in Australia. The regulatory system ( TGA Therapeutics Goods Act )in Australia is a little different again.
Q: Do you have any ambitions to use SweetBiotix or LPGOS in the future A: Absolutely yes, I like OPTI's three main products and see a business development, especially for SlimBiome products in particular in the future.
Peter talks of OPTI and SOH as a great business, a smart businessman and business model, licensing their IP as being a smart move. It is akin to owning a large tower block and renting the space out to your clients and your clients needing to go out to work and earn their keep. I'm investing in their IP; ultimately if I succeed so does OPTI. The BOD are very clever guys with a great business.