Seres Therapeutics Reports $12.8M Net Income and Strategic Focus on SER-155

Seres Therapeutics, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2025. The company recorded a net income of $12.8 million for the first half of 2025, a notable turnaround from a net loss of $59.1 million during the same period in 2024. This improvement was largely attributed to a gain of $52.4 million from the sale of its VOWST business to Société des Produits Nestlé S.A. (SPN) in September 2024. Total operating expenses for the first half of 2025 were $52.1 million, down from $63.3 million in the prior year, reflecting a strategic reduction in research and development costs as the company transitions its focus.

In terms of operational metrics, Seres Therapeutics reported a decrease in research and development expenses to $24.8 million for the first half of 2025, compared to $35.3 million in the same period last year. This decline was primarily due to reduced clinical trial costs associated with the SER-155 program, which has largely completed its Phase 1b study. General and administrative expenses also fell to $22.1 million from $28.0 million, driven by lower personnel-related costs following a workforce reduction after the sale of the VOWST business.

The company’s cash and cash equivalents stood at $45.4 million as of June 30, 2025, an increase from $30.8 million at the end of 2024. This increase was bolstered by cash installment payments received from SPN as part of the transaction, including a $50 million payment in January 2025. However, Seres Therapeutics has indicated that it will require additional funding to support ongoing operations and the development of its product candidates, particularly SER-155, which is designed to prevent bacterial bloodstream infections in patients undergoing allogeneic hematopoietic stem cell transplantation.

Strategically, Seres Therapeutics is focusing on advancing SER-155, which has received Breakthrough Therapy designation from the FDA. The company is preparing for a Phase 2 study that aims to enroll approximately 248 participants and is expected to provide interim results within twelve months of initiation. The company is actively seeking partnerships and other financing options to support this clinical progression. Additionally, Seres has entered into a Transition Services Agreement with SPN to provide manufacturing services related to the VOWST business until December 2025, which is expected to generate further income.

Looking ahead, Seres Therapeutics faces challenges related to its financial sustainability, as indicated by the substantial doubt about its ability to continue as a going concern. The company has acknowledged that it will need to generate significant revenue to achieve profitability, and it is exploring various avenues for capital, including potential collaborations and public or private equity financing. The ongoing development of SER-155 and other live biotherapeutic candidates remains central to its strategy, with the potential to address significant unmet medical needs in vulnerable patient populations.