Destiny have announced positive early results from its joint collaboration with SporeGen® on the prophylactic product – SPOR-COV® – to prevent respiratory infections. While the next steps in developed markets are eagerly awaited, its manufacturing partner in Vietnam (HURO) will be delivering the product to good manufacturing practice (GMP) standards.
The announcement of positive preclinical prophylaxis results for the prevention of COVID-19 and influenza infections elevates SPOR-COV closer to a clinical-stage product in Destiny’s portfolio. SPOR-COV plays to Destiny’s strengths because, like its two lead Phase 3-ready products, it is intended to prevent infections, and builds on the group focus in developing clinical-grade spore-based microbiome products.
The recent news flow in the microbiome space has been very positive. Two microbiome competitors to M3 have now been approved by the FDA, Ferring’s Rebyota and Seres’s Vowst (like M3, an oral product). Seres raised $250m in debt and Destiny’s competitor Vedanta Biosciences also raised $106.5m in an equity fundraising to develop its product VE303. Yet we have previously noted, within the bounds of cross-trial comparisons, the superiority of M3 over Vowst and VE303.
Our fair value for Destiny Pharma plc remains at £254.7m (or 279 pence per share).
