Seres Therapeutics Inc (MCRB) Q3 2024 Earnings Call Highlights: Strategic Moves and Clinical ...

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Release Date: November 13, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Seres Therapeutics Inc (NASDAQ:MCRB) reported positive results from their phase one B cohort two clinical study for C 155, showing a significant reduction in bacterial bloodstream infections.

  • The sale of VOUS to Nestle Health Science has strengthened Seres Therapeutics Inc (NASDAQ:MCRB)'s balance sheet, providing substantial immediate and future financial resources.

  • The company has applied for breakthrough therapy designation and qualified infectious disease product designation for C 155, which could expedite development and review processes.

  • Seres Therapeutics Inc (NASDAQ:MCRB) has fully retired its debt using proceeds from the VOUS transaction, improving its financial position.

  • The company is actively seeking a partner to maximize the potential of C 155, indicating strategic growth plans and potential for expanded market reach.

Negative Points

  • Seres Therapeutics Inc (NASDAQ:MCRB) reported a net loss from continuing operations of $51 million for the third quarter, an increase from the previous year.

  • The company experienced a loss of $23.4 million associated with the extinguishment of debt, impacting financial results.

  • There is uncertainty regarding the timeline for securing a partnership for C 155, which could affect future development plans.

  • Despite positive clinical results, the company faces challenges in expanding C 155 to additional patient populations without a partner.

  • The company has undergone a significant reduction in headcount, which may impact operational capabilities.

Q & A Highlights

Q: Could you elaborate on the potential for expanding C 155 into additional patient populations like auto HSCT and cancer neutropenia? Would these require separate phase one studies, or could they be part of a basket trial? Also, would you pursue these independently or with a partner? A: (Eric Schafft, CEO) The mechanism of C 155 is applicable to both allo and auto HSCT, among other populations. We are considering synergies in clinical trial design, potentially through a basket study. We don't anticipate needing to start over with phase one due to the established safety profile. We are open to partnerships to accelerate these efforts.

Q: Can you explain the differences between C 147 and C 155 in terms of composition and target pathogens? A: (Dr. Lisa Von Molke, Chief Medical Officer) C 155 and C 147 are different bacterial consortia. C 155 targets pathogens common in hematopoietic stem cell transplant patients, while C 147 is optimized for pathogens in chronic liver disease patients. Both aim to improve epithelial barrier integrity.