Seres Therapeutics Reports $125.7M Net Loss for 2024, Sells VOWST Business for $234.2M

Seres Therapeutics, Inc. reported a net loss from continuing operations of $125.7 million for the year ended December 31, 2024, compared to a net loss of $190.1 million in 2023. This improvement of $64.4 million reflects a significant decrease in operating expenses, primarily driven by a reduction in research and development expenses ($53.0 million) and general and administrative expenses ($24.3 million). The decrease in research and development costs stemmed from lower personnel-related costs, reduced platform expenses, and decreased spending on the SER-155 program and early-stage initiatives. The reduction in general and administrative expenses resulted from lower personnel costs and decreased professional fees.

A key development during the year was the sale of the company's VOWST business to Société des Produits Nestlé S.A. (SPN) on September 30, 2024, for total consideration of $234.2 million. This transaction resulted in a gain of $5.7 million for the year ended December 31, 2024, and a decrease in employee headcount from approximately 200 to 100. The sale included inventory, equipment, patents, know-how, and other assets related to VOWST. SPN also agreed to make future installment payments totaling $75 million, contingent on the company's compliance with a transition services agreement, and milestone payments based on VOWST's sales performance. SPN also purchased 14,285,715 shares of Seres common stock for $15 million.

Operationally, Seres focused on advancing its SER-155 program, an investigational live biotherapeutic for patients undergoing allo-HSCT. Positive Phase 1b clinical trial data showed a significant reduction in bloodstream infections and antibiotic exposure compared to placebo. In December 2024, the FDA granted SER-155 Breakthrough Therapy designation for reducing bloodstream infections in allo-HSCT patients. Exploratory biomarker data further supported the therapeutic mechanisms of SER-155. The company is currently designing a Phase 2 study for SER-155, incorporating feedback from the FDA. Additionally, Seres is conducting IND-enabling activities for SER-147, another live biotherapeutic candidate.

The company's financial statements reveal a cash and cash equivalents balance of $30.8 million as of December 31, 2024. However, the company anticipates needing additional funding in the first quarter of 2026 to support its operations. The company's ability to continue as a going concern is dependent on securing this additional funding, which is considered uncertain due to factors outside of the company's control. The company's future financial performance will depend on the successful development and commercialization of its pipeline candidates, including SER-155 and SER-147, and the ability to secure additional funding. The company's 10-K filing also notes that the company's common stock is currently trading below the minimum bid price requirement for continued listing on the Nasdaq Global Select Market. The company's board of directors intends to propose a reverse stock split to regain compliance.