Biome Australia (ASX: BIO) has extended its exclusive supply agreement with Italian biotechnology company Probiotical SpA for two years.
The new agreement ensures supply until 2028, replacing the previous agreement that was due to expire in June 2026.
This continuity is on existing commercial terms, with no new financial conditions disclosed, providing a stable foundation for Biome as it scales its operations internationally.
Probiotical has been a key supply chain partner for Biome Australia since the company's incorporation in 2018.
The news ensures supply chain continuity as Biome pursues international expansion and onshoring of its manufacturing program.
International Expansion and IP Development
The supply agreement extension is a strategic move that aligns with Biome's broader international expansion goals.
The company has been actively building its presence in markets such as Canada, the United Kingdom, Ireland, and New Zealand.
Recent efforts include securing distribution with Fullscript Canada and expanding into new retail channels domestically.
Beyond supply chain and distribution, Biome Australia is also advancing its intellectual property development.
This includes a patent application filed for its proprietary probiotic strain BMB18, with an associated human clinical trial underway with La Trobe University.
Financial Performance and Operational Stability
Biome Australia has demonstrated strong financial performance, reporting revenue of $12.4 million for the first half of financial year 2026.
Net profit for the period stood at $1.18 million.
The company has achieved positive EBITDA for eight consecutive quarters, indicating consistent operational profitability.
Gross margins have remained stable and strong at 61.1%.
Recent financial reports also indicated a reduction in debt and a shift to positive operating cash flow, which supports the company's growth initiatives and investment in areas like manufacturing onshoring and IP development.
Supply Chain Secured for Growth
Biome Australia's extension of its exclusive supply agreement with Probiotical through 2028 provides critical supply chain certainty.
This supports the company's ongoing international expansion and its domestic manufacturing onshoring program, building on recent financial performance and IP development milestones.
"Probiotical has been one of our most important strategic partners since the company was founded," founder and managing director Blair Vega Norfolk said.
"We look forward to continuing to develop the partnership alongside the ongoing investment we are making in Australian manufacturing capability."
