CAMBRIDGE, Mass. - Seres Therapeutics, Inc. (NASDAQ:MCRB), a clinical-stage biotherapeutics company, announced today that its stockholders have given the green light for the sale of its VOWST business to Société des Produits Nestlé S.A. The transaction is set to conclude by September 30, 2024, pending customary closing conditions.
The pivotal decision came after a recent stockholder vote, the results of which will be detailed in a forthcoming Current Report on Form 8-K to be filed with the SEC. This strategic move will transfer full ownership of the VOWST business, which includes the first FDA-approved orally administered microbiome therapeutic, to Nestlé Health Science.
VOWST, which was initially developed by Seres Therapeutics, received FDA approval in April 2023 for the prevention of the recurrence of Clostridioides difficile infection (CDI) in adults. Since its market introduction in June 2023, Nestlé Health Science has been leading its commercialization efforts.
The sale is part of a broader collaboration that began in July 2021 when Seres entered into a license agreement with Nestlé Health Science. As part of the transition, Seres will ensure the continuity of the supply chain through a standard transition service agreement.
Seres Therapeutics continues to focus on advancing its pipeline of live biotherapeutics for medically vulnerable populations. This includes SER-155, a product candidate showing promise in reducing bloodstream infections and related complications in patients undergoing allogeneic Hematopoietic Stem Cell Transplantation.
The press release also contains forward-looking statements regarding the transaction's expected completion and the potential benefits of the sale. It mentions the risks and uncertainties inherent in such deals, including the possibility that the transaction may not close within the anticipated timeframe or at all, and that the anticipated benefits may not materialize as expected.
This news is based on a press release statement from Seres Therapeutics, Inc. Investors and interested parties can anticipate further details to be disclosed in the company's SEC filings.
In other recent news, Seres Therapeutics has been making significant strides in its clinical studies and financial endeavors. The company reported positive data from its Phase 1b trial of SER-155, a treatment for patients undergoing allogeneic hematopoietic stem cell transplantation. The study demonstrated a reduced incidence of bloodstream infections and a decrease in antibiotic use, according to TD Cowen, which maintained a Buy rating on the company's shares.
Seres Therapeutics also announced the planned sale of its VOWST microbiome therapeutic assets to Nestle Health Science for $155 million, a move expected to strengthen the company's financial position and extend its cash runway, despite a reported net loss of $32.9 million. The proceeds from the sale will be used to retire existing debt and further the development of Seres' live biotherapeutic product pipeline.
The company is also advancing SER-155, currently in a Phase Ib study, and preparing SER-147 for IND readiness by the second half of 2025, targeting metabolic diseases. These are recent developments from Seres Therapeutics that highlight its commitment to addressing diseases with high unmet needs and medically vulnerable patient populations.
InvestingPro Insights
In light of Seres Therapeutics, Inc.'s recent announcement regarding the sale of its VOWST business, investors may find the following InvestingPro Insights particularly relevant. The company's market capitalization stands at approximately $128.58 million, reflecting investor sentiment and the company's current financial position. This valuation comes at a time when Seres is operating with a significant debt burden, an important consideration for stakeholders evaluating the company's financial health.
Despite the challenges, analysts have shown some optimism as evidenced by four analysts revising their earnings upwards for the upcoming period. This could indicate a belief in the company's potential to recover or succeed post-sale. However, it is also notable that Seres Therapeutics is quickly burning through cash, which could impact its operational capabilities and long-term strategic initiatives.
From a stock performance perspective, Seres Therapeutics has experienced a notable decline over the last week, with a 12.83% drop in price total return. This could be a response to the sale news or other market factors affecting investor confidence. Nonetheless, looking at a broader timeframe, the company has seen a strong return over the last three months, with a 21.89% increase, showcasing some degree of volatility in its stock price movements.
For those interested in further insights and metrics, InvestingPro offers additional tips on Seres Therapeutics, which can be accessed at: https://www.investing.com/pro/MCRB. In total, there are 11 more InvestingPro Tips available, which could provide a deeper understanding of the company's financials and market performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.