In a remarkable turn of events, Seres Therapeutics, a key player in the realm of microbiome therapeutics, witnessed a staggering surge of over 39% in its stock value subsequent to the release of its financial results for the third quarter (Q3) concluding on September 30, 2023. This astonishing rise came on the heels of a disheartening -28.47% decline in Seres Therapeutics’ stock value at the time of Tomorrow Events’ initial report on the Q3 results.
At the time of this publication, Seres Therapeutics Inc stock (MCRB) has witnessed a surge.
Seres Therapeutics Inc
Current Price: $1.30
Change : +0.37
Change (%): (39.43%)
Volume: 28.4M
Source: Tomorrow Events Market Data
The company disclosed that VOWST™, a collaborative product between Nestlé Health Science and Seres, designed to combat the recurrence of Clostridioides difficile infection (CDI) in adults, raked in net sales totaling $7.6 million, outpacing initial estimates.
Furthermore, Seres Therapeutics unveiled a strategic restructuring initiative, primarily aimed at directing resources towards the commercialization of VOWST and the finalization of the SER-155 Phase 1b study. This restructuring endeavor encompasses a substantial 41% reduction in the current workforce, poised to yield an annual cash savings ranging from $75 to $85 million in 2024. It is projected that the company will incur a one-time charge amounting to $5.0-$5.5 million in the fourth quarter of 2023, largely attributable to the workforce reduction.
Seres Therapeutics Inc. (MCRB, Financial) reported a net loss of $47.9 million for the third quarter of 2023, marking a decrease from the $60.0 million net loss recorded during the same period in 2022. As of the conclusion of the third quarter in 2023, the company’s cash, cash equivalents, and investments totaled $169.9 million, in contrast to the $181.3 million at the close of 2022.
These restructuring efforts are poised to yield substantial savings and fortify the company’s foundation for long-term business viability. Seres anticipates that its cash reserves, coupled with the projected savings from the restructuring initiative and the forthcoming receipt of the $45 million Tranche B under its existing senior secured debt facility with Oaktree Capital Management, L.P. (Oaktree), will adequately sustain its operations through the fourth quarter of 2024.
Seres Therapeutics Inc. stands eligible for Tranche B under the Term Loan Facility upon the achievement of trailing 6-month VOWST net sales totaling at least $35 million, no later than September 30, 2024, contingent upon meeting other applicable conditions.
Commenting on the development, an industry expert remarked, “Seres Therapeutics’ Q3 results and strategic restructuring signal a proactive approach towards sustained growth and long-term success in the field of microbiome therapeutics.”
