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10-K
SERES THERAPEUTICS, INC. filed this Form 10-K on 03/06/2019
Entire Document
 

Comparison of Years Ended December 31, 2017 and 2016

The following table summarizes our results of operations for the years ended December 31, 2017 and 2016:

 

 

 

Year Ended

December 31,

 

 

 

 

 

 

 

2017

 

 

2016

 

 

Change

 

 

 

(in thousands)

 

Revenue

 

$

32,100

 

 

$

21,766

 

 

$

10,334

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

89,455

 

 

 

81,989

 

 

 

7,466

 

General and administrative

 

 

34,040

 

 

 

32,616

 

 

 

1,424

 

Total operating expenses

 

 

123,495

 

 

 

114,605

 

 

 

8,890

 

Loss from operations

 

 

(91,395

)

 

 

(92,839

)

 

 

1,444

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest income (expense), net

 

 

1,590

 

 

 

1,260

 

 

 

330

 

Other income

 

 

425

 

 

 

 

 

 

425

 

Total other income (expense), net

 

 

2,015

 

 

 

1,260

 

 

 

755

 

Net loss

 

$

(89,380

)

 

$

(91,579

)

 

$

2,199

 

 

Revenue

 

Total revenue was $32.1 million and $21.8 million for the year ended December 31, 2017 and 2016, respectively.  Of the $32.1 million of revenue recognized for the year ended December 31, 2017, $20.0 million was received from NHS associated with the initiation of the Phase 3 study for SER-109 in patients with multiply recurrent CDI, which is a substantive milestone under the License Agreement. Of the $21.8 million of revenue recognized for the year ended December 31, 2016, $10.0 million was received from NHS associated with the initiation of the Phase 1b study for SER-262 in CDI, which was a substantive development milestone under the License Agreement.  Prior to the adoption of ASC 606 we recognize revenue associated with substantive milestones in accordance with FASB ASC Topic 605-28, Revenue Recognition-Milestone Method, or ASC 605-28. The $20.0 million and $10.0 million payments were recognized in full as related party collaboration revenue during the years ended December 31, 2017 and 2016, respectively. The remaining revenue for both periods principally relates to the recognition of the $120.0 million upfront payment under the License Agreement over the estimated performance period of 10 years.

 

Research and Development Expenses

 

 

 

Year Ended

December 31,

 

 

 

 

 

 

 

2017

 

 

2016

 

 

Change

 

 

 

(in thousands)

 

Microbiome therapeutics platform

 

$

63,695

 

 

$

46,611

 

 

$

17,084

 

SER-109

 

 

16,306

 

 

 

25,386

 

 

$

(9,080

)

SER-262

 

 

4,971

 

 

 

5,269

 

 

$

(298

)

SER-287

 

 

4,483

 

 

 

4,723

 

 

 

(240

)

Total research and development expenses

 

$

89,455

 

 

$

81,989

 

 

$

7,466

 

 

Research and development expenses were $89.5 million for the year ended December 31, 2017, compared to $82.0 million for the year ended December 31, 2016. The increase of $7.5 million was due primarily to the following:

 

an increase of $17.1 million in research expenses related to our microbiome therapeutics platform, due primarily to higher payroll and consultant costs of $6.1 million, an increase in facilities and depreciation costs of $5.3 million, an increase in sponsorship and license costs of $2.7 million, an increase in laboratory consumables and supplies of $1.6 million, an increase in IT expenses of $0.6 million, and an increase in office expenses of $0.7 million;

 

a decrease of $9.1 million in expenses related to our SER-109 program, due primarily to a decrease in clinical trial costs of $1.7 million, a decrease in other consulting costs of $1.2 million, a decrease in laboratory consumables and supplies of $3.5 million, a decrease in sequencing costs of $1.3 million, a decrease in animal studies of $0.6 million, a decrease in conference costs of $0.5 million, a decrease in office expenses of $0.3 million, and a decrease in IT expenses of $0.2 million, partially offset by an increase in contract manufacturing costs of $0.3 million;

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