Seres Therapeutics, a prominent player in the field of microbiome therapeutics, unveiled its financial results for the third quarter (Q3) concluding on September 30, 2023. In the wake of this announcement, the company’s stock witnessed a notable decline today.
At the time of this publication, Seres Therapeutics Inc stock (MCRB) has witnessed a decline.
Seres Therapeutics Inc
Current Price: $1.03
Change : -0.41
Change (%): (-28.47%)
Volume: 9.2M
Source: Tomorrow Events Market Data
The company disclosed VOWST™ net sales of $7.6 million, surpassing projected estimates. VOWST, a collaborative product between Nestlé Health Science and Seres, is designed to thwart the recurrence of Clostridioides difficile infection (CDI) in adults.
Additionally, Seres revealed a strategic restructuring initiative aimed at channeling resources toward the commercialization of VOWST and the finalization of the SER-155 Phase 1b study. This restructuring encompasses a 41% reduction in the current workforce, poised to yield an annual cash savings of approximately $75-$85 million in 2024. It is anticipated that the company will incur a one-time charge of $5.0-$5.5 million in the fourth quarter of 2023, primarily attributable to the workforce reduction.
Seres Therapeutics Inc. (MCRB, Financial) reported a net loss of $47.9 million for the third quarter of 2023, 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, as opposed to $181.3 million at the end of 2022.
The company’s restructuring efforts are poised to yield substantial savings and fortify its foundation for long-term business viability. Seres foresees that its cash reserves, combined with the anticipated savings from the restructuring and the impending receipt of the $45 million Tranche B under its existing senior secured debt facility with Oaktree Capital Management, L.P. (Oaktree), will 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, and contingent upon meeting other applicable conditions.
“Seres Therapeutics’ Q3 results and strategic restructuring signal a proactive approach towards sustained growth and long-term success in the field of microbiome therapeutics.”
