Biome Australia (ASX:BIO) signed a binding commercial manufacturing agreement with Specialty Probiotics Australia, with an initial term of two years, as it seeks to transition manufacturing of its Activated Probiotics range to Australia, according to a Wednesday Australian bourse filing.

The agreement requires no capital expenditure from Biome, and production in Australia will occur in smaller, more frequent batches. The first commercial batch is targeted for September, with the remaining range expected to move over around the following 18 months, subject to successful commercial scale-up and transition of production.

Biome will supply the active ingredients, and Specialty Probiotics will carry out domestic manufacture and finishing.

Biome will maintain its supply relationships with its European manufacturing partners to continue servicing European markets.