Ann: Clinical trial on asthma sufferers validates Biome probiotic, page-3

Impressive results today, highlighting that the underlying probiotics that Biome hold exclusivity over are highly efficacious v placebo.

Add to that, the massive size of the asthma market is equally significant, with estimates exceeding USD 18.08 billion and up to USD 50.00 billion (based on some estimated if you include complementary medicines). Should be a good opportunity for existing distribution channels to cross sell along with asthma meds, and will also help with acquisition of new stockists.

In short, team has done well to get on with the job despite the initial listing setback. Which, if we look at this from a glass half full perspective, allows us to buy here at a 50% discount and at what is now comparatively a valuation lower than many peers with much slower growth rates, smaller end markets and poor/no IP ownership/exclusivity.

As disappointing as the listing was, at some point we need to look forward and judge it on the basis of the current MC and EV, and in that vein, the company has had some very encouraging results (both this trial and revenue/margin growth). I am looking forward to more on new products, sales and am keenly following their Biome Performance range, which appears to be getting some traction in professional sport circles, including AFL (no mean feat).

All in all, the opportunity appears massive here (MC ~$20m and EV ~$12m) and these asthma results from the trial completed should support continued revenue growth for the company.

Cheers,
8's