Seres Therapeutics (MCRB) announced that it has commenced a Phase 1b clinical trial assessing its SER-262 in patients with primary Clostridium Difficile Infection (CDI). The trial, expected to enroll ~60 subjects who have experienced a first episode of CDI, will compare the CDI recurrence rate between the SER-262 and placebo groups at up to 8 weeks after dosing.
In a recent report, I had discussed the science behind MCRB’s pipeline. The key value driver for MCRB is of course SER-109, which is being developed CDI. According to Canaccord Genuity’s John Newman, SER-109 could achieve peak sales of $680 million in the U.S. alone. Further, Newman expects ex-U.S. sales to total $280 million. SER-109 could receive royalties of around 10% on these so by 2022, SER-109 could potentially generate $700 million in revenue. Based on the peak sales forecast for SER-109, MCRB certainly looks undervalued. I believe that MCRB is worth watching.