Biome gains pharmacy share as Australian probiotic production begins

Pharmacy sales reach a new high

Biome Australia Limited (ASX:BIO) has started FY27 with its flagship probiotic range gaining ground across every Australian region, while the company generated positive operating cash flow during a quarter of major operational change.

IQVIA data for the 52 weeks ended 3 October shows Biome Daily remained the number one probiotic product in Australian pharmacy by both units and dollar value. Activated Probiotics also recorded its strongest quarter of wholesaler sell-through to pharmacy, with consumer sales, same-store sales and market share rising nationally and in every region.

The latest figures extend the momentum from Biome’s FY26 sales records, when Biome Daily first took the top position in Australian pharmacy by units and value. The current data covers pharmacy sales only and represents a trailing 52-week period, rather than a standalone three-month market-share measure.

Onshore manufacturing moves into production

Production with Specialty Probiotics Australia was under way during September, with Australian-made Activated Probiotics expected to reach pharmacy shelves from November. Biome said domestic production is expected over time to improve cost of goods sold and reduce working-capital requirements, while lowering exposure to currency movements, international freight volatility and offshore supply disruption.

The manufacturing transition is now moving from agreement to commercial delivery. That matters because the company is running offshore and onshore production in parallel while managing higher domestic sales volumes, so the next financial reports should provide a clearer test of whether the expected cost and working-capital benefits are appearing in the numbers.

China distribution remains subject to final agreement

Biome has signed a heads of agreement with H&S Global for exclusive cross-border e-commerce distribution of Activated Probiotics in mainland China. The initial term is three years, with exclusivity applying in the first year and continuation in years two and three dependent on agreed purchase targets.

The arrangement is binding on exclusivity and certain other matters, but completion still depends on a master distribution agreement. Volumes, purchase targets and the launch date have not been confirmed; Biome continues to plan a launch within FY27.

Positive operating cash flow despite investment

Customer receipts rose 10% from the previous quarter to $6.5 million, while net operating cash flow was positive at $100,000. Cash at 30 September stood at $3.4 million, with a further $3.1 million in unused NAB facilities, giving total available funding of approximately $6.5 million. Drawn debt was unchanged at $1.9 million.

Manufacturing and operating-cost payments fell 17% from the prior corresponding period to $2.9 million, although staff costs included $416,000 related to annual bonuses and the long-term incentive settlement of the former chief financial officer. The company also spent $179,000 on intellectual property, including the BMB18 patent application and clinical trial.

The cash position follows Biome’s FY26 profit result, which included a second consecutive full-year net profit according to the company. The quarterly result is encouraging, but a single quarter of $100,000 in operating inflow leaves limited room for execution errors as Biome funds manufacturing, clinical development and international expansion at the same time.

BMB18 recruitment reaches 20%

Recruitment is under way in Melbourne and Athens for the multi-centre BMB18 human clinical trial, with 48 participants recruited, representing 20% of the planned cohort. Biome said BMB18 is its own strain and is being tested to the same standard as the rest of its range.

The next identifiable milestones are commercial rather than purely financial: Australian-made product appearing on pharmacy shelves from November, completion of the H&S Global distribution agreement and confirmation of the China launch plan. The BMB18 trial adds a separate scientific catalyst, but its eventual results and the patent application remain uncertain.