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Jun 30, 2024
Seres Therapeutics Q2 2024 Earnings Report
Reported second quarter financial results and provided business updates.
Key Takeaways
Seres Therapeutics reported a net loss of $32.9 million for the second quarter of 2024. The company's VOWST asset sale is expected to provide a $175 million cash infusion, which will be used to retire debt and advance the company's pipeline.
VOWST asset sale to provide $175M cash infusion, less approximately $20M in settlement of net obligations.
SER-155 Phase 1b placebo-controlled Cohort 2 clinical readout on track for September.
Based on existing cash, deal economics and operating plans, Seres expects to fund operations into Q4 2025.
Second quarter 2024 net sales for VOWST were approximately $14.4 million, reflecting an increase of approximately 43% compared to first quarter net sales of $10.1 million.
Seres Therapeutics
Seres Therapeutics
Forward Guidance
Seres expects to fund operations into the fourth quarter of 2025, based on existing cash, deal economics, and operating plans.
Positive Outlook
- VOWST asset sale will significantly strengthen Seres’ balance sheet.
- Transaction proceeds to fully retire debt.
- Advancement of wholly-owned cultivated live biotherapeutic pipeline.
- SER-155 program remains on track for a clinical data readout in September.
- Focus on medically vulnerable patient groups with high risk of life-threatening enteric-derived bacterial infections.
Challenges Ahead
- Sale of VOWST asset.
- More than a third of employees will transfer to Nestlé Health Science.
- Net loss of $32.9 million for the second quarter of 2024.
- Uncertainty of impact of the 50/50 profit or loss sharing arrangement on our reported results and liquidity.
- Company may not be able to realize the anticipated benefits of the proposed transaction.