BioGaia
Probiotics throughout life
BioGaia ($BIOG-B.ST) is a €1 billion Swedish health company that has been a pioneer in microbiome research for over 30 years and specialises in developing, marketing and selling probiotic products as food supplements for adults and babies.
Founded in 1990, BIOG has been listed since May 1998 on what today is Nasdaq OMX Nordic: in these 26 years, the price has appreciated 25x or ~13% p.a. (but it’s up ~20% p.a. over the last 20 years).
BIOG’s share capital consists of 3.7 million A-shares (not listed) and 97.3 million B-shares (listed). All A-shares are owned by Annwall & Rothschild Investments (a company jointly owned by co-founders Peter Rothschild, current Chairman, and Jan Annwall), which also owns 0.5% of the B-shares. But with the A-shares carrying 10 votes each vs 5 for the B-shares, Annwall & Rothschild controls ~28% of the votes despite having just 4% of total capital. The rest of the B-shares are free float: among the top shareholders there are Fjärde AP-fonden (The Fourth Swedish National Pension Fund, 8%), EQT (5%) and Cargill (3%).1
A short intro to probiotics: from the Latin “pro” (for) and “biota” (life)
While probiotic effects were first described around the turn of the 20th century, only in 2001 the World Health Organization (WHO) formally defined them as “live microorganisms, which, when administered in adequate amounts, confer a health benefit on the host”. To qualify as probiotics, products must contain live bacteria and must have scientifically documented health benefits. Products including probiotics are typically foods such as yoghurt or juice, as well as dietary supplements
The global probiotic industry is fragmented and lacks uniform regulations, particularly regarding efficacy and quality: for a probiotic to be authentic, it must offer strain-specific proven health advantages to the target group ascertained by clinical studies conducted on humans, not studies done in vitro (in contrast to other supplements marketed as such). Bacteria are classified according to their genus, species, and strain.
BIOG develops, manufactures and sells probiotic products for gut, oral, and immune health for the whole family from birth and through all stages of life (for adults it also offers a bone health product). Its major seller (Protectis BABY drops) is officially recommended for the treatment of colic in six international guidelines for doctors. Highly promising research is also under way on the use of probiotics in areas such as metabolism and skincare.