CAMBRIDGE, Mass. - Seres Therapeutics, Inc. (NASDAQ: NASDAQ:MCRB), a microbiome therapeutics platform, announced today that it has reached a preliminary agreement to sell its VOWST product line and associated intellectual property to Nestlé Health Science. The transaction, which is expected to close within 90 days, is contingent on the negotiation of definitive agreements, approval from Seres’ shareholders, and other customary conditions.
The deal will see Seres receive an upfront payment along with additional financial considerations, allowing the company to fully retire its debt and extend its cash runway into Q4 2025, assuming successful performance under a transition services agreement.
Eric Shaff, President and CEO of Seres, expressed pride in the company's success in developing VOWST, the first FDA-approved oral microbiome therapy. He stated that following the transaction, Seres will continue to collaborate with Nestlé Health Science to ensure a smooth transition and ongoing product availability.
The capital from this deal is intended to support Seres' balance sheet and fund the development of SER-155 and other microbiome therapeutic candidates. These candidates aim to serve underserved patient populations, including those with chronic liver disease, cancer neutropenia, and solid organ transplants, potentially protecting millions from life-threatening infections and addressing antimicrobial resistance.
VOWST, which was commercially launched in June 2023 by Nestlé Health Science, is designed to prevent the recurrence of Clostridioides difficile infection (CDI) in adults. This agreement will grant Nestlé Health Science full ownership of the VOWST product.
Seres Therapeutics, which obtained FDA approval for VOWST in April 2023, is also working on advancing SER-155 in a Phase 1b study for patients undergoing allogeneic hematopoietic stem cell transplantation. The treatment is anticipated to reduce the incidence and severity of gastrointestinal and bloodstream infections, as well as acute graft-versus-host disease.
The information is based on a press release statement from Seres Therapeutics.
In other recent news, Seres Therapeutics, a biotechnology firm, has announced its Q1 2024 financial results, with a focus on the performance of its primary product, VOWST. Despite slower growth in the initial quarter, the company noted an increase in VOWST net sales in March and April, totaling $10.1 million for Q1, contrasted with a VOWST loss of $14.3 million.
The firm is actively considering various avenues for additional capital and potential partnerships to support its pipeline and meet financial obligations.
Coverage for VOWST now extends to approximately 83% of commercial and 55% of Medicare Part D lives, and the company is making efforts to educate healthcare practitioners and engage with payers to support VOWST. Positive data is anticipated from the SER-155 program's Cohort 2 study, adding to the company's optimism about the future potential of microbiome therapeutics.
While the company saw a slower Q1 for VOWST, resulting in a loss of $14.3 million, an acceleration in net sales was observed in March and April. The SER-155 program has shown promising results, and the company is actively considering partnering opportunities related to this program.
These are among the recent developments for Seres Therapeutics as it navigates the evolving landscape of microbiome therapeutics.
InvestingPro Insights
As Seres Therapeutics, Inc. (NASDAQ: MCRB) navigates a pivotal transaction with Nestlé Health Science, the company's financial standing and market performance provide a backdrop to the deal's significance. According to InvestingPro data, Seres Therapeutics currently holds a market capitalization of 172.65 million USD. Despite a substantial revenue growth of 2380.87% in the last twelve months as of Q1 2024, the company's gross profit margin remains low at 2.57%. This highlights the challenges Seres faces in translating top-line growth into bottom-line profitability.
The recent performance of Seres' stock price reflects a volatile journey for investors, with a significant return over the last week of 17.04%, yet a sharp decline of 76.05% over the past year. This volatility is underscored by two InvestingPro Tips that investors may find particularly relevant: analysts have revised their earnings downwards for the upcoming period, and the company is quickly burning through cash. These insights suggest that while the deal with Nestlé Health Science may provide some financial relief, Seres Therapeutics still faces hurdles in achieving profitability.
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