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SEC Filings

SERES THERAPEUTICS, INC. filed this Form 10-Q on 11/08/2018
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Although we maintain workers’ compensation insurance to cover us for costs and expenses we may incur due to injuries to our employees resulting from the use of hazardous materials, this insurance may not provide adequate coverage against potential liabilities. We do not maintain insurance for environmental liability or toxic tort claims that may be asserted against us in connection with our storage or disposal of biological, hazardous or radioactive materials.

In addition, we may incur substantial costs in order to comply with current or future environmental, health and safety laws and regulations. These current or future laws and regulations may impair our research, development or production efforts. Our failure to comply with these laws and regulations also may result in substantial fines, penalties or other sanctions.

Comprehensive tax reform bills could adversely affect our business and financial condition.


The U.S. government recently enacted comprehensive federal income tax legislation that includes significant changes to the taxation of business entities. These changes include, among others, (i) a permanent reduction to the corporate income tax rate, (ii) a partial limitation on the deductibility of business interest expense, (iii) a shift of the U.S. taxation of multinational corporations from a tax on worldwide income to a territorial system (along with certain rules designed to prevent erosion of the U.S. income tax base) and (iv) a one-time tax on accumulated offshore earnings held in cash and illiquid assets, with the latter taxed at a lower rate. Notwithstanding the reduction in the corporate income tax rate, the overall impact of this tax reform is uncertain, and our business and financial condition could be adversely affected. We urge our stockholders to consult with their legal and tax advisors with respect to any such legislation and the potential tax consequences of investing in our common stock.

Risks Related to Our Common Stock

The price of our common stock may be volatile and fluctuate substantially, which could result in substantial losses for purchasers of our common stock.

Our stock price is likely to be volatile. Furthermore, the stock market in general and the market for smaller biopharmaceutical companies in particular have experienced extreme volatility that has often been unrelated to the operating performance of particular companies. As a result of this volatility, our stockholders may not be able to sell their common stock at or above the price they paid for their common stock. The market price for our common stock may be influenced by many factors, including:


the success of competitive products or technologies;


actual or anticipated changes in our growth rate relative to our competitors;


results of clinical trials of our product candidates or those of our competitors;


developments related to any future collaborations;


regulatory or legal developments in the United States and other countries;


development of new product candidates that may address our markets and may make our product candidates less attractive;


changes in physician, hospital or healthcare provider practices that may make our product candidates less useful;


announcements by us, our collaborators or our competitors of significant acquisitions, strategic partnerships, joint ventures, collaborations or capital commitments;


developments or disputes concerning patent applications, issued patents or other proprietary rights;


the recruitment or departure of key personnel;


the level of expenses related to any of our product candidates or clinical development programs;


failure to meet or exceed financial estimates and projections of the investment community or that we provide to the public;


the results of our efforts to discover, develop, acquire or in-license additional product candidates or products;


actual or anticipated changes in estimates as to financial results, development timelines or recommendations by securities analysts;


variations in our financial results or those of companies that are perceived to be similar to us;


changes in the structure of healthcare payment systems;


market conditions in the pharmaceutical and biotechnology sectors;


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