What exactly is the microbiome?

The microbiome refers to the trillions of microorganisms (bacteria, fungi, viruses) that live in and on our bodies, primarily in our intestines. Scientists have discovered these microbes play critical roles in digestion, immune function, metabolism, and even brain health. The companies in this investment theme are developing ways to modify or harness these microbial communities to treat disease.

What are "live biotherapeutics" or "engineered probiotics"?

Unlike traditional probiotics found in yogurt, live biotherapeutics are precisely engineered beneficial bacteria designed as medical treatments. These are developed with specific genetic modifications to produce therapeutic molecules or perform targeted functions within the body. They represent a new class of living medicines that can be prescribed by doctors for specific conditions.

What is phage therapy and why is it important?

Phage therapy uses bacteriophages—viruses that specifically infect and kill bacteria—to target harmful bacteria without harming beneficial ones. This approach offers a highly precise alternative to antibiotics, which often kill both good and bad bacteria indiscriminately. As antibiotic resistance grows, phage therapy represents a promising alternative treatment for bacterial infections.

What is the gut-brain axis?

The gut-brain axis refers to the two-way communication network between your digestive system and brain. Research shows that gut bacteria produce neurotransmitters and other compounds that can influence brain function, mood, and behavior. Several companies in this theme are exploring treatments that target this connection for neurological and psychological conditions.

How risky are these biotech investments compared to established pharmaceutical companies?

These microbiome-focused companies typically carry higher risk than established pharmaceutical companies because many are still in clinical development stages without approved products generating revenue. Their value largely depends on clinical trial outcomes, regulatory approvals, and successful commercialization. However, they also offer potentially higher growth if their innovative approaches prove successful and gain market adoption.

15 handpicked stocks

Microbiome Modulators

Discover a carefully selected group of innovative biotechnology companies leveraging the untapped power of the body's microbiome. These pioneering firms are creating revolutionary therapies that target the root causes of disease by rebalancing our internal microbial ecosystems.

Han Tan | Market Analyst

Updated 2 days ago | Published at जून 17