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Seres Therapeutics: Clinical Data Coming Soon

Sage Advisors profile picture
Sage Advisors


  • Seres will have a data-rich 2020 with two late-stage readouts (SER-109 and SER-287) and a Phase 1 readout as well (SER-401).
  • These readouts, if positive will move the stock upwards. If negative, expect a free fall.
  • Partners including Nestle Health and AstraZeneca help offset R&D and clinical trial expenses for Seres.
  • Lucrative markets exist in ulcerative colitis and oncology should SER-287 and SER-401 prove efficacious.
  • The company has multiple shots on goal; however, results will be binary, and should the data be negative, the company has little cash, no reoccurring revenue stream, nor a plan to propel it forward.

Seres Therapeutics (NASDAQ:MCRB) is a microbiome company founded in 2010 which is on the cusp of proving whether the "bugs as drugs" concept is viable. Results of fifteen years of research and clinical trials are expected by year end. Investors who want to bet on a paradigm shift that could result in shares doubling by year end should consider initiating a position in Seres.

Seres Therapeutics is focused on a concept called dysbiosis, where the bacteria that live in and on our body are out of balance. Dysbiosis is characterized by a loss of diversity of flora, a lack of beneficial bacteria, and an overgrowth of harmful bacteria. There is increasing evidence in the scientific literature that imbalances in bacteria can cause serious disease. Seres is developing a new class of medicines that are composed of a selection of bacterial spores carefully curated to restore a healthy microbiome and cure diseases such as ulcerative colitis and cancer. The company has expertise in isolating microbes and a "library" of healthy strains of bacteria from healthy donors from which they try to identify organisms that can improve the microbiome of patients suffering from a variety of diseases including cancer and ulcerative colitis.

SER-109 for C. difficile - Will it be the first approved microbiome product?

One of the diseases Seres is focused on is recurrent C. difficile infections. C. difficile is a toxin bearing bacteria that causes diarrhea, nausea, and fevers when it overgrows in the colon. This type of infection can occur after the use of broad spectrum antibiotics and can usually be treated with antibiotics targeting the C. difficile bacteria. However, 20-30 percent of the patients subsequently present with reoccurring infections. An "altered colonic microbiota, primarily due to antibiotics, is the underlying cause of C. difficile infections." According to the

This article was written by

Sage Advisors profile picture
M.A. Science. I use my science background, the knowledge acquired while working for a major pharmaceutical company and access to scientists with domain specific knowledge to find the best opportunities in biotech.

Analyst’s Disclosure: I am/we are long MCRB. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (9)

Boston Biotech Investors profile picture
Congratulations @Sage Advisors on another win. I am going to read everything you publish twice moving forward.

Super job!
Michael Rogus profile picture
NDHT profile picture
Yes, Seres has found the right ingredients, the secrete sauce, and now the "tasty meal", with some luck, too.
Sage Advisors profile picture
Yup, 3 to 33 is a pretty nice move. They have the secret sauce.

Ferring Pharma read out a few months back with their c. difficile microbiome product and it worked. That was proof of concept and gave me a lot more conviction.
Yet the field is moving away from the "few good bugs" hypothesis and taking a much more "systems" view here with modulators of broader microbial species given that it is very hard to shift GI dysbiosis solely via through the of more commensals - you need to address the landscape in which these are being introduced too.
Smiling Dog profile picture
Another fascinating article. I'm a strong believer that the health of our gut is the largest factor in determining our overall health. Therefore establishing at least a small position here is a no brainer for me. Thanks for the great research!
NDHT profile picture
Good to read.

"However, the bet is on whether Seres has picked the right strains of bacteria in the right doses and is using the right protocols for engraftment. The microbiome and the complex interactions between species are poorly understood and only a fraction of the bacteria are spore forming and thus amenable to being placed in a capsule. Thus, it is a real possibility that the alterations in gut bacteria may not be significant enough to impact disease."

Yes the science is solid. The big question is: Has MCRB master the secrete sauce and right ingredients?
How are you getting to a ~$500m valuation given a 26% chance at a multi-billion dollar product?
Sage Advisors profile picture
That is a 12 month price target which is contingent on good data readouts in Phase 1 ( SER-401) and Phase 2 (SER-287).

500 million valuation is a reflection of the likelihood of an FDA approval increasing with these milestones being reached.
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