Probi Acquires License for New Probiotic Strains – Strengthening Its Offer in Functional Food

Regulatory News:

Probi (STO:PROB)

Probi has signed an agreement with the Swedish biotech company, Probac, to acquire a license for two probiotic strains for use in food applications, primarily dairy products. The license covers the global market, excluding the Nordic countries. The IP rights for two additional patented strains are included in the agreement, and these will be used for future product development.

Through the agreement, Probi strengthens its offer within the area of Functional Food with specific strains for dairy products. The strains licensed from Probac are based on probiotic research that shows positive effects on the gastrointestinal tract and the immune system. The strains are currently used in the Verum™ range of dairy products, including yoghurt and soured milk, produced by the Norrmejerier dairy company, which owns the rights for the Nordic market.

"We regard this acquisition of new probiotic strains as a great opportunity to grow our Functional Food business area by adding the dairy segment to our offer,” says Peter Nählstedt, CEO of Probi.

The new strains will complement Probi’s existing offer of clinically documented probiotics within the gastro, immune and iron absorption areas. Probi’s strains are used in both Consumer Healthcare products and Functional Food products, including chilled beverages such as ProViva and GoodBelly.

"There is a strong global market potential for functional food with probiotics. These strains have been used in the Verum dairy products for quite some years with proven success, and they will give us the opportunity to develop new product applications,” concludes Peter Nählstedt.

The agreement also includes the IP rights for two thermostable strains, which will enable Probi to extend its offer into new applications in new and growing market segments for probiotics.

This information falls under the obligatory disclosure provisions of the Swedish Securities Market Act and/or the Financial Instruments Trading Act.

ABOUT PROBI

Probi AB is a Swedish publicly traded bioengineering company that develops effective and well-documented probiotics. Through its world-leading research, Probi has created a strong product portfolio in the gastrointestinal health and immune system niches. Probi’s products are available to consumers in more than 30 countries worldwide. Probi’s customers are leading food, health- product and pharmaceutical companies in the Functional Food and Consumer Healthcare segments. In 2015, Probi had sales of MSEK 216. The Probi share is listed on NASDAQ OMX Stockholm, Small Cap. Probi has about 3,500 shareholders. For more information, please see www.probi.se.

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