Seres Therapeutics Q2 2024 Update: R&D Expenses and Nestle Deal

TL;DR

Seres Therapeutics Q2 2024: R&D costs steady, Nestle deal continues.

AI Summary

Seres Therapeutics, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported research and development expenses for the first six months of 2024 and 2023. Key agreements mentioned include the Twenty Twenty-One License Agreement with Nestle Health Science, which was active from January 1, 2024, to June 30, 2024, and also as of December 31, 2023. The filing also references a Phase Three Study with Nestle Health Science initiated on January 31, 2016.

Why It Matters

This filing provides insight into Seres Therapeutics' ongoing research and development activities and its financial relationship with Nestle Health Science, crucial for understanding the company's operational progress and future prospects.

Risk Assessment

Risk Level: medium — The company operates in the highly regulated and competitive pharmaceutical industry, with significant R&D expenses and reliance on strategic partnerships.

Key Numbers

• 2834 — SIC Code (Pharmaceutical Preparations industry classification)
• 001-37465 — SEC File Number (Company's SEC filing identifier)

Key Players & Entities

• Seres Therapeutics, Inc. (company) — Filer
• Nestle Health Science (company) — Partner in license agreement and study
• 200 SIDNEY STREET, CAMBRIDGE, MA 02139 (location) — Business and Mail Address
• 20240630 (date) — Reporting period end date
• 20240813 (date) — Filing date

FAQ

Key Financial Figures

• $0.001 M — ch registered Common Stock, par value $0.001 MCRB The Nasdaq Stock Market LLC (Nas
• $0.001 — ad 151,730,995 shares of common stock, $0.001 par value per share, outstanding. Ser

Filing Documents

• mcrb-20240630.htm (10-Q) — 2798KB
• mcrb-ex10_5.htm (EX-10.5) — 74KB
• mcrb-ex31_1.htm (EX-31.1) — 13KB
• mcrb-ex31_2.htm (EX-31.2) — 12KB
• mcrb-ex32_1.htm (EX-32.1) — 8KB
• mcrb-ex32_2.htm (EX-32.2) — 8KB
• 0000950170-24-095821.txt ( ) — 10952KB
• mcrb-20240630.xsd (EX-101.SCH) — 1699KB
• mcrb-20240630_htm.xml (XML) — 1684KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Condensed Consolidated Financial Statements (unaudited)

Item 1. Condensed Consolidated Financial Statements (unaudited) 6 Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 6 Condensed Consolidated Statements of Operations and Comprehensive Loss (Income) for the three and six months ended June 30, 2024 and 2023 7 Condensed Consolidated Statements of Stockholders' (Deficit) Equity for the three and six months ended June 30, 2024 and 2023 8 Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 9 Notes to Condensed Consolidated Financial Statements 11

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 31

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 53

Controls and Procedures

Item 4. Controls and Procedures 54

– OTHER INFORMATION

PART II – OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 55

Risk Factors

Item 1A. Risk Factors 55

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 100

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 100

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 100

Other Information

Item 5. Other Information 100

Exhibits

Item 6. Exhibits 102

SIGNATURES

SIGNATURES 104 2

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q, or the Quarterly Report, contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this Quarterly Report, including without limitation statements regarding our future results of operations and financial position, business strategy, prospective products, product approvals, research and development costs, timing and likelihood of success, manufacturing activities and related timing, expected benefits of our restructuring initiative and cost saving measures, commercialization efforts and related timing, our ability to continue as a going concern, timing and likelihood of completing the pending Transaction (as defined herein), the completion of the production suite and milestone payments under the Bacthera Agreement, our rights and potential resolutions under the Oaktree Credit Agreement and our ability or intention to pursue any remedies thereunder, or the timing of any of the foregoing, plans and objectives of management for future operations and future results of anticipated products, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expect," "plan," "anticipate," "could," "intend," "target," "project," "contemplate," "believe," "estimate," "predict," "potential" or "continue" or the negative of these terms or other similar expressions.

– FINANCI AL INFORMATION

PART I – FINANCI AL INFORMATION

Condensed Consolidated F inancial Statements (unaudited)

Item 1. Condensed Consolidated F inancial Statements (unaudited) SERES THERAPEUTICS, INC. CONDENSED CONSOLIDATED B ALANCE SHEETS (unaudited, in thousands, except share and per share data) June 30, December 31, 2024 2023 Assets Current assets: Cash and cash equivalents $ 71,232 $ 127,965 Collaboration receivable - related party 18,601 8,674 Inventories 52,997 29,647 Prepaid expenses and other current assets 6,435 9,124 Total current assets 149,265 175,410 Property and equipment, net 17,794 22,457 Operating lease assets 103,282 109,793 Restricted cash 9,873 8,185 Restricted investments — 1,401 Other non-current assets (1) 41,517 41,354 Total assets $ 321,731 $ 358,600 Liabilities and Stockholders' Deficit Current liabilities: Accounts payable $ 4,809 $ 3,641 Accrued expenses and other current liabilities (2) 86,356 80,611 Operating lease liabilities 9,195 6,677 Deferred income - related party 7,922 7,730 Total current liabilities 108,282 98,659 Long term portion of note payable, net of discount 102,494 101,544 Operating lease liabilities, net of current portion 100,936 105,715 Deferred revenue - related party 95,364 95,364 Warrant liabilities — 546 Other long-term liabilities 1,729 1,628 Total liabilities 408,805 403,456 Commitments and contingencies (Note 15) Stockholders' deficit: Preferred stock, $ 0.001 par value; 10,000,000 shares authorized at June 30, 2024 and December 31, 2023; no shares issued and outstanding at June 30, 2024 and December 31, 2023 — — Common stock, $ 0.001 par value; 360,000,000 shares authorized at June 30, 2024 and 240,000,000 shares authorized at December 31, 2023; 151,633,922 and 135,041,467 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively 152 135 Additional paid-in capital 964,012 933,244 Accumulated other comprehensi

View Full Filing

View this 10-Q filing on SEC EDGAR