Seres Therapeutics Reports First Quarter Financial Results and Provides Operational Progress Update
SER-109 Phase 2 study enrollment complete; results expected in mid-2016
Academic collaborations further microbiome therapeutic leadership in immuno-oncology, rare genetic diseases and other indications
“The first quarter was marked by strong progress extending our
leadership position in the development of microbiome therapeutics,” said
Recent Highlights:
-
Completion of enrollment in the ongoing SER-109 Phase 2 clinical
study (
May 2016 ): The Phase 2 randomized, placebo-controlled study is designed to assess the efficacy and safety of SER-109 for the prevention of multiply recurrent CDI. Initial study results are expected in the middle of this year, and the Company plans to initiate a Phase 3 study in the second half of 2016. -
SER-109 Expanded Access Program (EAP) initiation (
May 2016 ): The Company has initiated a SER-109 EAP at selected sites participating in the ongoing Phase 2 study. The EAP will enable eligible patients with recurrent CDI to have continued access to SER-109. -
Thomas J. DesRosier appointed as Chief Legal Officer and Executive Vice President (May 2016 ): DesRosier, a proven biopharma leader with deep experience representing and advising biopharmaceutical companies, will be responsible for global legal operations, as well as corporate compliance and quality assurance. -
Broad collaboration agreement with
Memorial Sloan Kettering Cancer Center (MSK) to develop microbiome therapeutics for hematopoietic stem cell transplantation (HSCT) and immuno-oncology treatment (May 2016 ). The MSK collaboration will support the Company’s efforts to develop first-in-field microbiome therapeutics in two diverse areas: (1) improving the morbidity and mortality outcomes of patients undergoing HSCT for treatment of cancer, by prevention of transplant related infections and graft versus host disease (GVHD); and (2) increasing the efficacy and safety of checkpoint inhibitors used for immuno-oncology treatment. The collaboration also provides the Company with a global license to MSK’s intellectual property related to the use of bacterial compositions in treating HSCT patients and related areas, bolstering the Company’s broad existing composition of matter and method of use patent estate. -
Academic collaborations to support development of microbiome
therapeutics for Inflammatory Bowel Disease (IBD) (
May 2016 ): The Company entered into two separate research collaborations with leading academic groups, St. Joseph’sHamilton, Ontario and theMedical University ofGraz , to support the Company’s ongoing development of the first potential microbiome therapeutics for IBD. The collaborations are expected to provide support for the Company’s IBD therapeutic candidates, including the SER-301 program, a rationally-designed, preclinical stage therapeutic candidate comprising bacterial species cultured in vitro. -
Academic collaboration with
University of Pennsylvania researchers to support the development of microbiome therapeutics for IBD and rare genetic metabolic disorders, including urea cycle disorders (May 2016 ): The Company entered into a multi-year collaboration with leading microbiome clinical-scientists from theUniversity of Pennsylvania to perform research and clinical studies with rationally selected bacterial compositions in patients with ulcerative colitis, and with certain rare genetic metabolic diseases, including urea cycle disorders. -
European Medicines Agency (EMA) SER -109 Phase 3 guidance (April 2016 ): The EMA has provided initial guidance regarding SER-109 Phase 3 design that may lead to two Phase 3 studies being conducted to support SER-109 approval in theEuropean Union . Discussions are continuing with EMA to determine the most effective manner to bring SER-109 to European patients as quickly and efficiently as possible. -
Nestlé Health Science collaboration agreement executed and
$120 million upfront payment obtained (February 2016 ). The Company expects to receive an additional$30 million in development milestones during 2016.
Financial Results:
The Company reported a net loss of
In the first quarter, the Company recognized
Research and development expenses for the first quarter of 2016 were
As of
About Seres Therapeutics
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. All
statements contained in this press release that do not relate to matters
of historical fact should be considered forward-looking statements,
including without limitation statements regarding the sufficiency of the
Company’s existing cash resources, the development of its various
product candidates, the commercialization of its CDI therapeutic
candidates, the timing and results of clinical trials, the value and
impact of the agreement with Nestlé, expected milestone payments under
the agreement with Nestlé and potential benefits and outcomes of the
Company’s collaborations with MSKCC, the
These forward-looking statements are based on management’s current
expectations. These statements are neither promises nor guarantees, but
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,
including, but not limited to, the following: we have incurred
significant losses, are not currently profitable and may never become
profitable; our need for additional funding, which may not be available;
our limited operating history; the unpredictable nature of our early
stage development efforts for marketable drugs; the unproven approach to
therapeutic intervention of our microbiome therapeutics; the lengthy and
expensive process of clinical drug development, which has an uncertain
outcome; potential delays in enrollment of patients which could affect
the receipt of necessary regulatory approvals; potential delays in
regulatory approval, which would impact the ability to commercialize our
product candidates and affect our ability to generate revenue; any fast
track or Breakthrough Therapy designation may not lead to faster
development, regulatory approval or marketing approval; our possible
inability to receive orphan drug designation should we choose to seek
it; our reliance on third parties to conduct our clinical trials and the
potential for those third parties to not perform satisfactorily; our
reliance on third parties to manufacture our product candidates, which
may delay, prevent or impair our development and commercialization
efforts; our lack of experience in manufacturing our product candidates;
the potential failure of our product candidates to be accepted on the
market by the medical community; our lack of experience selling,
marketing and distributing products and our lack of internal capability
to do so; failure to compete successfully against other drug companies;
potential competition from biosimilars; failure to obtain marketing
approval internationally; post-marketing restrictions or withdrawal from
the market; anti-kickback, fraud, abuse, and other healthcare laws and
regulations exposing us to potential criminal sanctions; recently
enacted or future legislation; compliance with environmental, health,
and safety laws and regulations; protection of our proprietary
technology; protection of the confidentiality of our trade secrets;
changes in
SERES THERAPEUTICS, INC. | |||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||
(unaudited, in thousands, except share and per share data) | |||||||||||||
March 31, |
December 31, |
||||||||||||
2016 | 2015 | ||||||||||||
Assets | |||||||||||||
Current assets: | |||||||||||||
Cash and cash equivalents | $ | 193,228 | $ | 73,933 | |||||||||
Investments | 110,050 | 131,149 | |||||||||||
Prepaid expenses and other current assets | 3,568 | 2,528 | |||||||||||
Total current assets | 306,846 | 207,610 | |||||||||||
Property and equipment, net | 16,082 | 7,751 | |||||||||||
Restricted cash | 1,540 | 1,539 | |||||||||||
Total assets | $ | 324,468 | $ | 216,900 | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||||
Current liabilities: | |||||||||||||
Accounts payable | 5,763 | 5,397 | |||||||||||
Accrued expenses and other current liabilities | 7,059 | 5,523 | |||||||||||
Deferred revenue - related party | 12,000 | — | |||||||||||
Total current liabilities | 24,822 | 10,920 | |||||||||||
Lease incentive obligation | 4,527 | 586 | |||||||||||
Deferred revenue, net of current portion - related party | 105,290 | — | |||||||||||
Total liabilities | 134,639 | 11,506 | |||||||||||
Commitments and contingencies | |||||||||||||
Preferred stock, $0.001 par value; 10,000,000 shares authorized at
March |
— | — | |||||||||||
Stockholders’ equity: | |||||||||||||
Common stock, $0.001 par value; 200,000,000 shares authorized at
March |
39 | 39 | |||||||||||
Additional paid-in capital | 291,998 | 287,937 | |||||||||||
Accumulated other comprehensive income | 108 | 30 | |||||||||||
Accumulated deficit | (102,316 | ) | (82,612 | ) | |||||||||
Total stockholders’ equity | 189,829 | 205,394 | |||||||||||
Total liabilities and stockholders’ equity | $ | 324,468 | $ | 216,900 | |||||||||
SERES THERAPEUTICS, INC. | |||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | |||||||||||||
(unaudited, in thousands, except share and per share data) | |||||||||||||
Three Months Ended March 31, | |||||||||||||
2016 | 2015 | ||||||||||||
Revenue: | |||||||||||||
Collaboration revenue - related party | $ | 2,710 | $ | — | |||||||||
Total revenue | 2,710 | — | |||||||||||
Operating expenses: | |||||||||||||
Research and development expenses | $ | 15,416 | 5,561 | ||||||||||
General and administrative expenses | 7,210 | 2,606 | |||||||||||
Total operating expenses | 22,626 | 8,167 | |||||||||||
Loss from operations | (19,916 | ) | (8,167 | ) | |||||||||
Other income (expense): | |||||||||||||
Interest income | 268 | 49 | |||||||||||
Interest expense | (56 | ) | (66 | ) | |||||||||
Revaluation of preferred stock warrant liability | — | 213 | |||||||||||
Total other income, net | 212 | 196 | |||||||||||
Net loss | $ | (19,704 | ) | $ | (7,971 | ) | |||||||
Net loss per share attributable to common stockholders, basic
and diluted |
$ | (0.50 | ) | $ | (1.15 | ) | |||||||
Weighted average common shares outstanding, basic and diluted | 39,186,130 | 6,912,725 | |||||||||||
Other comprehensive income: | |||||||||||||
Unrealized gain on investments, net of tax of $0 | 78 | 31 | |||||||||||
Total other comprehensive income | 78 | 31 | |||||||||||
Comprehensive loss | $ | (19,626 | ) | $ | (7,940 | ) | |||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160516005375/en/
Source:
Seres Therapeutics
Carlo Tanzi, Ph.D., 617-203-3467
Head of
Investor Relations and Corporate Communications
Ctanzi@serestherapeutics.com