Seres Therapeutics Q2 2024 Financial Results and Business Updates

Seres Therapeutics, Inc., a leader in live biotherapeutics, has reported its financial results for the second quarter of 2024, alongside several pivotal business updates. The company has emphasized the significance of the VOWST asset sale, which, upon stockholder approval, is expected to bolster Seres' financial standing substantially. This strategic move aligns with Seres' mission to enhance patient outcomes in medically vulnerable populations through its cultivated live biotherapeutics.

The sale of the VOWST asset is anticipated to provide Seres with a $175 million cash infusion, with approximately $20 million allocated to settle net obligations between the involved parties. This capital is expected to enable Seres to fully retire its debt and advance its pipeline of biotherapeutic products. CEO Eric Shaff highlighted the asset sale's potential to strengthen Seres' balance sheet and its commitment to improving patient outcomes by leveraging their biotherapeutic expertise to target new patient groups prone to severe bacterial infections.

Seres' lead program, SER-155, is progressing towards a significant clinical readout. Cohort 2 of the SER-155 Phase 1b study, which includes patients receiving allogeneic hematopoietic stem cell transplants (allo-HSCT), is scheduled to yield data in September. This data is expected to underscore the clinical and commercial potential of the SER-155 program and Seres' broader biotherapeutic approach. The company aims to address the needs of multiple vulnerable patient groups, such as those with chronic liver disease, cancer neutropenia, and solid organ transplants, who are at heightened risk of serious bacterial infections due to disrupted gastrointestinal microbiomes.

In April, Seres completed enrollment for Cohort 2 of the SER-155 Phase 1b study, involving 45 participants. The upcoming data will include safety, pharmacology, and efficacy metrics, particularly focusing on the rates of bacterial infections and febrile neutropenia within 100 days post-transplant. Previous data from Cohort 1 showed that SER-155 was well tolerated and effective in reducing pathogen domination in the gastrointestinal microbiome, garnering FDA Fast Track Designation.

On August 6, Seres announced an agreement with Société des Produits Nestlé S.A. for the sale of the VOWST business. The transaction, pending stockholder approval, includes upfront payments, milestone payments, and an equity investment. Additionally, installment payments are expected in 2025, conditional on Seres' compliance with transition obligations. The transaction is projected to close within 90 days of the agreement signing, with Seres continuing to support VOWST's commercial supply and maintaining strong production capacity through 2025.

Seres is also advancing the development of another biotherapeutic candidate, SER-147, aimed at preventing GI-derived infections and improving outcomes for patients with metabolic diseases, including chronic liver disease. The company anticipates SER-147 to be IND-ready by the second half of 2025.

Financially, Seres reported a net loss of $32.9 million for Q2 2024, contrasting with a net income of $46.6 million in the same period in 2023. This shift is primarily due to a $125 million milestone payment received in 2023 following FDA approval of VOWST. Research and development expenses for Q2 2024 were $17.9 million, a decrease from $46.8 million in Q2 2023, attributed to the reallocation of VOWST manufacturing costs to the balance sheet post-approval and reduced personnel costs from the restructuring plan announced in November 2023.

General and administrative expenses decreased to $16.1 million in Q2 2024 from $28.1 million in Q2 2023, largely due to reduced professional fees and lower personnel costs. As of June 30, 2024, Seres held $71.2 million in cash and cash equivalents. The company expects to fund its operations into the fourth quarter of 2025, leveraging the proceeds from the VOWST asset sale and structured installment payments. Without the asset sale, Seres projected the ability to fund operations into the fourth quarter of 2024.

This strategic realignment, including the transition of VOWST-related capabilities to Nestlé Health Science and the transfer of a substantial portion of employees, positions Seres as a more streamlined organization with a reduced cash burn rate.

How to obtain the latest research advancements in the field of biopharmaceuticals?

In the Synapse database, you can keep abreast of the latest research and development advances in drugs, targets, indications, organizations, etc., anywhere and anytime, on a daily or weekly basis. Click on the image below to embark on a brand new journey of drug discovery!