A glaring differential in validation

Recent transactions and the introduction of a new Act of the US Congress are further advancing the narratives on both the microbiome and new antimicrobials. These are the two areas where Destiny Pharma is focussed. Deals in the anti-infective space highlight the discrepancy between US and UK valuations for these assets, and it can only be a matter of time before Destiny, with its late-stage assets with better competitive profiles, becomes involved.

We have left our financial forecasts and valuation unchanged, but recognise the differential between our valuation of Destiny, with two Phase 3-ready anti-infective and microbiome assets, and Seres’ $2.1bn market capitalisation. We expect this to be narrowed once Destiny starts announcing its own transactions. Our fair value of Destiny Pharma remains at £200.2m or 335p per share.