Blis enters into partnership with Probi

Blis Technologies has entered into a long-term strategic partnership with a Swedish global probiotics company, which will take a 13% shareholding in the Dunedin company.

A licence and supply agreement has been established, under which Blis has granted Probi rights to manufacture and sell Blis K12 and Blis M18 probiotics.

A cash issue of $9.18 million of new shares to Probi would result in a 13% shareholding and provide the company with capital to support Blis’ revenue growth initiatives, a note to the NZX said yesterday.

Since its establishment at Sweden’s Lund University in 1991, Probi — which is listed on Nasdaq Stockholm — has expanded operations to more than 40 markets and holds more than 500 patents globally.

It focused on researching, manufacturing and delivering probiotics for supplements and functional food.

The partnership was an ‘‘exciting opportunity’’ for the company and a significant endorsement of Blis, chairman Tony Offen said.

‘‘Probi provides extensive international industry experience and relationships which will drive collaboration opportunities and revenue growth,’’ Mr Offen said.

Probi chief executive Tom Ronnlund said it was a compelling business partnership as Blis was an innovative, science-led company with leading market share in probiotic oral health.

‘‘Through this partnership, we will broaden our portfolio and strengthen our position as leaders in the use of clinically documented bacterial strains.

‘‘Beyond immediate commercial opportunities, the partnership also included research collaboration.

Blis previously announced revenue of $10.6 million, ebitda of $1 million, and net profit of $0.6 million for the year to March 31, its third consecutive profitable year.

At that time, the company said the delivery of meaningful longer-term growth would require ongoing investment upfront.

It was its expectation that, in the longer-term, finished products would comprise the majority of its sales revenue.

Investment in innovation and science would continue and the assessment of new and emerging market opportunities would be actively sought to capitalise on the international reach those opportunities could deliver.

Mr Ronnlund would join the Blis board after its annual meeting of shareholders which will be held on Wednesday, July 21, at the Dunedin Public Art Gallery.

Another Dunedin biotech company’s domestic business continues to grow as the Northland District Health Board adopts the full suite of Pacific Edge’s Cxbladder tests.

Yesterday, Pacific Edge announced it had reached commercial agreement with the Northland DHB and Northland’s primary health entity Mahitahi Hauora for the use of Cxbladder products.

Northland DHB serves a population of more than 190,000, of which about one-third are Maori, and with a higher than average number of people aged 50 or older.

Under the new programme, patients with blood in their urine will be referred by their primary care physician for the Cxbladder Triage test and will be able to provide a urine specimen at their local diagnostic laboratory, possibly avoiding the need to travel long distances to a urology clinic or hospital for investigation.

A pilot scheme of Cxbladder testing in Northland showed more than half of patients being evaluated for haematuria (blood in their urine), or being followed up for bladder cancer, could have avoided an invasive cystoscopy procedure based on their Cxbladder test results, Pacific Edge vice-president commercial and franchise Brent Pownall said.

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