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Sep 30, 2024

Seres Therapeutics Q3 2024 Earnings Report

Reported third quarter 2024 financial results and provided business updates.

Key Takeaways

Seres Therapeutics reported a net loss from continuing operations of $51 million for the third quarter of 2024. The company's financial position was strengthened by the VOWST sale, and they anticipate funding operations into Q4 2025.

SER-155 Phase 1b clinical results showed a significant reduction in bacterial bloodstream infections and systemic antibiotic exposure.

Financial position strengthened following completion of VOWST™ sale.

Seres expects to fund operations into Q4 2025 based on existing cash and projected deal economics.

Company is seeking SER-155 strategic partnership to accelerate the next study in allo-HSCT and expand to multiple target populations.

EPS
-$0.33
Previous year: -$0.37
-10.8%
Gross Profit
$0
Previous year: -$209K
-100.0%
Cash and Equivalents
$66.8M
Previous year: $170M
-60.7%
Free Cash Flow
-$34.8M
Previous year: -$61.1M
-43.0%
Total Assets
$179M
Previous year: $368M
-51.4%

Seres Therapeutics

Seres Therapeutics

Forward Guidance

Seres expects to fund operations into the fourth quarter of 2025 based on existing cash, projected installment payments from Nestlé Health Science, and current operating plans.

Positive Outlook

  • Existing cash balance of $66.8 million as of September 30, 2024.
  • Projected installment payments to be received from NestlĂ© Health Science in 2025.
  • Streamlined organization with a lower cash burn rate.
  • No outstanding debt.
  • Evaluating actions to reduce expenses and support capital strategy.

Challenges Ahead

  • Transaction-related obligations.
  • Uncertainty regarding the timing and receipt of future milestone payments from NestlĂ© Health Science.
  • Potential disruptions due to transition services provided to NestlĂ© Health Science.
  • Risks associated with dependence on third parties for clinical trials and manufacturing.
  • Competition in the biotherapeutics market.