MIDAS TIPS UPDATE: Share price has slimmed down a little - but OptiBiotix's profile is set to expand
In 2015, OptiBiotix Health was a darling of the market. Midas tipped the shares in July at 33.5p and by the end of the year, they were 77.5p.
Since then, the performance has been pedestrian and today the stock is 67p, having drifted for most of 2016.
Investors may feel impatient, but now is not the time to sell. OptiBiotix is focused on an area that is increasingly recognised as playing a fundamental role in our health and wellbeing, the business is expected to expand considerably over the next two to three years and the shares should respond accordingly.
Shaping up: GoFigure shake users have lost weight steadily
Chief executive Stephen O’Hara is an expert on the human microbiome, the trillions of micro-organisms that populate the body.
These affect us in numerous ways, contributing to conditions such as obesity, eczema and even heart disease.
OptiBiotix has screened and selected a variety of micro-organisms to produce products in four areas: weight management, cholesterol reduction, sugar substitutes and skin issues, including the superbug MRSA.
The weight management product, GoFigure, was launched online in July and comes as snack bars and shakes.
Early users have been enthusiastic, steadily losing weight every week. US health food giant Whole Foods also stocks the range and other retailers are likely to follow.
O’Hara is at an advanced stage with the cholesterol-lowering compounds, which will be available either as capsules or in food, such as yogurt.
A deal has been agreed with a US consumer company and more contracts are expected with manufacturers and distributors. Millions of people take statins to reduce their cholesterol, but the OptiBiotix products are thought to have fewer side-effects.
The sugar substitute is exciting, too. Entirely natural, it is effectively a fibre that the body cannot digest, so it is almost as sweet as sugar but has no calories. Consumer tests have been positive, but work is ongoing to make the product even better.
Meanwhile, talks are under way with a global sugar manufacturer to produce SweetBiotix.
Weight management: GoFigure comes as snack bars and shakes
The skin product is the most recent in the OptiBiotix stable, courtesy of a joint venture with Manchester University. Studies have shown that certain microbes can alter the texture and pliancy of skin, making it look and feel younger.
The group is also working on a compound that can kill the MRSA bug and stop it re-attacking the elderly and frail. Clinical tests are scheduled for next year, but results in the lab are promising.
O’Hara is a microbiologist by background and spent 20 years in the NHS. However, he is an entrepreneur by temperament and is determined to make OptiBiotix a long-term success.
Midas verdict: OptiBiotix shares have had a poor 2016 but should gain ground as more commercial agreements materialise.
Interest in the microbiome is increasing rapidly in the medical profession and food industry, and OptiBiotix is at the centre of this field. Current investors should hold. Others may find the shares appealing.
Most watched Money videos
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- Mini Cooper SE: The British icon gets an all-electric makeover
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- Land Rover unveil newest all-electric Range Rover SUV
- How to invest for income and growth: SAINTS' James Dow
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Mini celebrates the release of brand new all-electric car Mini Aceman
- Blue Whale fund manager on the best of the Magnificent 7
- MailOnline asks Lexie Limitless 5 quick fire EV road trip questions
- CITY WHISPERS: Bill Ackman's cerulean eyes charm...
- Britain's nascent battery industry receives shot in the...
- Helium and hydrogen company set to join stock market in...
- Cost-of-living crunch wipes shine off Thomas Sabo jewellery
- Where is Labour's 'white heat' revolution to revive...
- FTSE 100 hits an all-time high - but remember the stock...
- British businesses awash with 'accidental' bosses who...
- Shipping broker Clarksons on list of shame after...
- North Sea projects worth £21bn put at risk by Labour: Tax...
- Virgin Money's biggest independent investor...
- JOHCM UK EQUITY INCOME FUND: Rate cuts... and a spending...
- TONY HETHERINGTON: Boss behind firms fined £340k for more...
- Hollywood silly money? I'd only have stuffed it under the...
- MIDAS SHARE TIPS UPDATE: Wind is turning in Octopus...
- MIDAS SHARE TIPS: Why it soon won't be hip to give the...
- Cash in on the Northern property boom as our experts...
- As world lurches from crisis to crisis, experts share...
- 86-year-old Peter's woes with a faulty smart meter that...