I thought I'd add some points about the Microba story after watching a Sharewise interview with Luke the CEO. It covered largely the same territory as Andrew's far more engaging Strawman interview that @Scoonie has posted notes on.

The interviewer was not inspiring, but Luke powered through and some of his points grabbed me, especially after rewatching the Strawman one.

Microba are at the forefront of microbiome genetic testing and derived therapeutics trials.

A golden goose

Microba's goal is to prove itself to be a 'golden goose', and then, once proven, sell or partner for the eggs or even the goose. They have no intention of being a late-stage drug developer, they will look to partner once they have 'de-risked' any drug candidate ideally after stage 2 trials.

So, they have both a growing testing business, and the potential for golden egg therapies derived from the genetics databank that their testing allows them to develop.

Microba's drug development pathway may be clearer

According to Luke, Microba has in it's favour:

• Their own genetic databank developed through their testing business
• The lead on microbiome genetic testing and drug candidate discovery, and academic respect in the field
• Well established partnerships with, and key shareholders in, Sonic Healthcare (to help them roll out testing) and Ginko Bioworks (helped them discover the most promising drug candidates from their databank)
• Therapeutic candidates derived from healthy humans

On the last point, Luke noted that their drug candidate microba are derived from the microbiome of healthy humans (and observed to be less-established in people with some chronic illnesses). Because of this, he suggests they are less risky than novel exogenous drug candidates, and it would be easier to recruit trial volunteers for.

Of course, that doesn't mean that they will succeed in creating a therapy, it just means that their trials may be easier to set up.

What to watch for

Continuing organic growth of the testing business. Testing revenue increased by 50% organically last YOY, and they also acquired a UK business for a total of 125% revenue increase. They plan to win small markets, like 'Sydney', and then replicate a winning strategy in each small market. So they need to see repeat ordering and evidence of clinician buy-in and organic growth within markets as well as market expansion.

An acceptable balance sheet. They do not intend to force an early breakeven. They want to keep growing to maintain their market lead, and also invest in therapy development and trials.

Phase 2 trial announcements.

They have a solid team, great partners and a clear plan but a way to go before they prove they have a golden goose.