The market's first microbiome company is getting a good reception to its first commercially-approved drug.
January 17, 2024
Just last week, I named Seres Therapeutics (Nasdaq: MCRB) as my Best Buy for January.
It was a gutsy call to make (pun intended). Seres has a market cap of just $160 million. It’s a micro-cap in the biotech space, with very little commercial revenue.
Yet I’m really impressed with how its newly-approved drug VOWST has gotten off to such a strong start.
VOWST is a bacterial consortium that’s used to treat Clostridium difficile infection (“CDI”). That’s one of the nastiest and most deadly bacterial infections on the planet.
Its approach of introducing good bacteria to restore the natural balance of the gut is an innovative change from the standard of wiping out CDI (and good bacteria too) with antibiotics. And because VOWST can be taken as an oral pill, it’s a welcome alternative for patients who might not enjoy a fecal transplant or an injectable shot.
Seres sold $10 million of VOWST in its most recent fourth quarter and received prescription scripts for 1,082 new patient starts.
That’s great news for investors to hear.
As I explain in my Best Buy presentation, I think that’s just the beginning. I believe VOWST will account for $300 million in annual net revenue by fiscal 2027 and will account for 20% share of the 2nd-recurrence CDI market.
I admit this is a very high risk investment that isn’t for the faint of heart or the weak-stomached. Yet I also recently stated that “objectively, I think this has multibagger written all over it.”
Seres was just one of the five Best Buys our advisors presented this month. After revealing each of them live on our Subscriber Call, we then published our Best Buys as Advisor Updates on the 15th and are discussing them every day in our Community Forum.
We also track and report their real-time performance — in both the good times and the bad — on our Best Buys portfolio scorecard.
If you’d like to see a few more of our favorite stock ideas, I’d like to invite you to see our Best Buys for January and to take a test drive of everything 7investing has to offer for just $1.
That’s two new recommendations and five Best Buys every month, for just $17 per month or $199 per year.
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