Seres Therapeutics, Inc. reported significant financial developments in its recent 10-Q filing for the quarter ending September 30, 2024. The company, which focuses on developing live biotherapeutics, completed the sale of its key product, VOWST, to Société des Produits Nestlé S.A. on September 30, 2024. This transaction included an upfront cash payment of $100 million, with additional installment payments of $50 million due in January 2025 and $25 million in July 2025, contingent on compliance with obligations under a Transition Services Agreement (TSA).

As of September 30, 2024, Seres reported cash and cash equivalents of $66.8 million, a decrease from $127.9 million at the end of 2023. Total current assets also fell to $72.9 million from $175.4 million, while total assets decreased to $178.7 million from $358.6 million. The company’s total liabilities decreased significantly to $154.8 million from $403.5 million, leading to an improvement in total stockholders’ equity to $23.9 million, compared to a deficit of $44.9 million at the end of 2023.

For the three months ended September 30, 2024, Seres reported total operating expenses of $29.2 million, down from $44.6 million in the same period of 2023. However, the net loss from continuing operations increased to $51.0 million from $41.0 million year-over-year. Notably, the company recorded a net income from discontinued operations of $139.8 million, compared to a loss of $6.8 million in the prior year, resulting in overall net income of $88.8 million for the quarter, a significant turnaround from a net loss of $47.9 million in 2023.

For the nine months ended September 30, 2024, Seres reported a net loss from continuing operations of $110.1 million, an improvement from a loss of $155.4 million in the same period of 2023. The company’s accumulated deficit stood at $962.5 million as of September 30, 2024.

Strategically, the company has undergone a restructuring plan, which included a workforce reduction of approximately 41%, equating to about 160 positions eliminated. This restructuring aims to prioritize the commercialization of VOWST and the advancement of SER-155, an investigational oral live biotherapeutic. The company anticipates continued operating losses and negative cash flows, raising substantial doubt about its ability to continue as a going concern without additional funding by the fourth quarter of 2025.

In addition to the financial changes, Seres received a notice from Nasdaq regarding its common stock closing below the $1.00 minimum bid price requirement, necessitating compliance by May 2025 to maintain its listing. The company’s future capital requirements will depend on various factors, including installment payments, manufacturing costs, and regulatory review outcomes.

About Seres Therapeutics, Inc.

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