Seres Therapeutics announced two strategic transactions designed to strengthen its balance sheet, lower operating expenses, and extend its projected cash runway well into the first quarter of 2027.
The clinical-stage biotechnology company said it has reached an agreement with Nestlé Health Science that will provide Seres with $25 million in 2026 in exchange for buying out potential future net sales-based milestone payments tied to VOWST, the microbiome therapeutic business Seres sold to Nestlé Health Science in 2024. The payment will be made in two installments of $12.5 million each, scheduled for July 1 and October 1, 2026.
In addition, Seres restructured the lease for its facility at 101 CambridgePark Drive in Cambridge, Massachusetts. The amended agreement reduces the amount of leased space, lowers rental rates and facility operating expenses, and is expected to significantly decrease the company’s ongoing annual facility costs and long-term lease obligations. Under the revised arrangement, Seres will retain a smaller footprint under a 10-year lease while making certain payments and establishing a new letter of credit.
The company reported cash and cash equivalents of $29.8 million as of March 31, 2026. Based on the new transactions and current operating plans, Seres expects its cash resources to fund operations well into the first quarter of 2027. The projection does not include any potential proceeds from future partnerships or other financing activities.
Seres is continuing to focus on its live biotherapeutics pipeline targeting inflammatory and immune diseases. The company highlighted its Phase 2-ready SER-155 program for patients undergoing allogeneic hematopoietic stem cell transplant (allo-HSCT), pending funding. It also expects clinical data later this month from an investigator-sponsored study evaluating SER-155 in immune checkpoint inhibitor-related enterocolitis being conducted at Memorial Sloan Kettering Cancer Center.
The company previously led the development of VOWST, the first orally administered microbiome-based therapeutic approved by the U.S. Food and Drug Administration for preventing recurrent Clostridioides difficile infection in adults following antibacterial treatment.
KEY QUOTES:
“We have taken meaningful actions to strengthen our balance sheet and extend our cash runway well into the first quarter of 2027. The Company intends to continue to exercise rigorous financial discipline while advancing its live biotherapeutic programs in inflammatory and immune diseases and pursuing partnerships and other sources of capital to support continued pipeline development, including our Phase 2-ready SER-155 program in allo-HSCT. We look forward to the clinical readout expected later this month from the investigator-sponsored study of SER-155 in immune checkpoint inhibitor-related enterocolitis being conducted at Memorial Sloan Kettering Cancer Center, a long-term collaborator with Seres.”
Richard Kender, Executive Chair And Interim Chief Executive Officer, Seres Therapeutics
“These transactions will improve our financial flexibility, and the lease restructure marks progress in our goal to reduce our leased space to align with our focused corporate strategy. We are pleased with these outcomes, which will provide near-term capital from the Nestlé agreement and significantly reduce our ongoing annual facility-related cash spending via the restructured lease. Importantly, while reducing fixed costs and preserving capital, we are maintaining the operational infrastructure needed to support our pipeline as we pursue additional sources of funding and strategic opportunities.”
Marella Thorell, Chief Financial Officer, Seres Therapeutics
