Blackmores takes $10m stake in Adelaide probiotics pioneer BiomeBank
Australia's largest vitamins business Blackmores has paid A$10 million for a 14 per cent interest in Adelaide-based biotech BiomeBank. The deal values BiomeBank at A$60 million and gives the Kirin-owned vitamins maker a position in the global probiotics market.
Transaction snapshot
Deal value: A$10 million for a 14 per cent stake, implying a post-money valuation of A$60 million. A further A$5 million may be invested if certain milestones are met.
Deal multiples: N/A
Deal type: Minority strategic equity investment
Investors: Blackmores (owned by Japanese conglomerate Kirin). Existing BiomeBank backers include Ellerston Capital and the South Australian Venture Capital Fund, managed by Artesian Venture Partners.
BiomeBank was established in 2018 by four gastroenterologists, including chief executive Sam Costello. The company is a pioneer in faecal microbiota transplant research, using samples donated by volunteers. It currently sells a liquid syringe product in Australia and is working to deliver human-gut-derived microbiomes in capsule form. Costello said microbiome science and therapies were becoming more established in medicine for treating a range of conditions.
Blackmores chief executive Alastair Symington said the company was drawn to BiomeBank's research and the prospect of mass-market products that could help treat conditions including inflammatory bowel disease. He said probiotics efficacy could be materially higher than vitamins, with stronger patient outcomes.
The global probiotics market is worth around A$7 billion. It remains small relative to traditional vitamins, which is roughly 20 times larger. Symington said probiotics was a fast-growing segment of the broader health and wellness market, where consumer spending had held up despite pressure on household budgets from higher petrol prices. He said Blackmores had not seen a fall in spending in its category, with consumers prioritising health over other budget items.
Blackmores posted a 5 per cent rise in profit to ¥6.3 billion (A$55.8 million) for calendar 2025, according to Kirin's latest investor presentations. Kirin said at its February annual results that Blackmores had delivered robust sales performance for its flagship Blackmores and Bioceuticals brands, sold through pharmacists and other professional channels, with revenue up across most Asian markets. Symington said performance was tracking in line with Kirin's expectations.
Blackmores was founded in 1932 and acquired by Kirin in 2023 for A$1.9 billion. It sits within Kirin's Health Sciences division. Kirin also owns Lion in Australia, which houses the XXXX Gold, Tooheys, Furphy and Hahn beer brands. Symington has led Blackmores since 2019.
In the Australian vitamins market, Blackmores competes with Swisse Group, owned by Hong Kong-listed Health & Happiness. Swisse reported like-for-like annual sales growth of 5.8 per cent in late March.
