Seres Therapeutics Reports $32.7 Million 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 March 31, 2025. The company achieved a net income of $32.7 million, a substantial turnaround from a net loss of $40.1 million in the same period last year. This improvement was primarily driven by a gain of $52.2 million from the sale of its VOWST business to Société des Produits Nestlé S.A. (SPN), completed in September 2024. Total operating expenses decreased to $27.2 million from $34.4 million year-over-year, reflecting reduced research and development costs as the company shifts focus following the divestiture.

In terms of operational metrics, Seres Therapeutics reported a decrease in research and development expenses to $11.8 million from $19.5 million, attributed to the completion of the Phase 1b study of SER-155 and a reduction in personnel-related costs. The company also incurred $3.5 million in manufacturing services expenses under a Transition Services Agreement (TSA) with SPN, which will continue until December 2025. As of March 31, 2025, Seres had cash and cash equivalents of $58.8 million, a significant increase from $30.8 million at the end of 2024, bolstered by the cash received from the sale of VOWST.

Strategically, the company is focusing on advancing SER-155, an investigational oral live biotherapeutic aimed at preventing bacterial bloodstream infections in patients undergoing allogeneic hematopoietic stem cell transplantation (allo-HSCT). The FDA granted Breakthrough Therapy designation for SER-155 in December 2024, and the company is preparing to submit a Phase 2 study protocol to the FDA. The Phase 2 study is expected to target 248 participants and incorporate an adaptive design, with interim results anticipated within twelve months of initiation.

Despite these positive developments, Seres Therapeutics faces challenges, including the need for additional funding to support ongoing operations and product development. The company has indicated that it will require further financing by the first quarter of 2026, raising concerns about its ability to continue as a going concern. The filing highlights that the company has identified conditions that raise substantial doubt regarding its ability to meet future financial obligations, emphasizing the importance of securing partnerships and additional capital to sustain its operations and development efforts.