| Key Points: – Seres Therapeutics to sell VOWST assets to Nestlé Health Science for an undisclosed sum – Transaction expected to retire Seres’ debt and extend cash runway into Q4 2025 – Company to refocus on developing SER-155 and other cultivated microbiome therapeutics |
Seres Therapeutics has announced plans to sell its groundbreaking microbiome therapy VOWST to Nestlé Health Science. This transaction, detailed in a non-binding memorandum of understanding, marks a significant shift in Seres’ business strategy and financial outlook.
VOWST, approved by the FDA in April 2023, made history as the first orally administered microbiome therapeutic for preventing recurrent Clostridioides difficile infection (CDI). The drug’s development and initial commercialization were part of a license agreement between Seres and Nestlé Health Science, established in July 2021. Now, Nestlé Health Science is poised to take full ownership of VOWST, consolidating its position in the microbiome therapeutics market.
For Seres, this deal represents more than just a product sale. It’s a calculated decision to strengthen its financial position and refocus its efforts on developing new microbiome-based treatments. The company expects to receive capital infusions, including an upfront payment, which will be used to fully retire its existing debt facility with Oaktree Capital Management. This financial restructuring is projected to extend Seres’ cash runway into the fourth quarter of 2025, providing crucial time and resources for its next phase of development.
Eric Shaff, President and CEO of Seres, emphasized the company’s pride in bringing VOWST to market and assured a smooth transition of the product to Nestlé Health Science. He highlighted the exciting new chapter ahead for Seres, focusing on advancing SER-155 and other wholly-owned cultivated microbiome therapeutic candidates.
The company’s future pipeline targets several underserved patient groups, including those with chronic liver disease, cancer neutropenia, and solid organ transplants. Seres’ approach aims to protect medically vulnerable patients from life-threatening infections while addressing the global challenge of antimicrobial resistance (AMR).
SER-155, currently in a Phase 1b study, is at the forefront of Seres’ new direction. The drug is being evaluated in patients receiving allogeneic hematopoietic stem cell transplantation, with the potential to reduce gastrointestinal and related bloodstream infections, as well as the incidence of acute graft-versus-host disease.
This strategic pivot allows Seres to concentrate its resources on developing innovative microbiome therapeutics that could have far-reaching impacts on patient care. By divesting VOWST, the company is betting on its ability to create value through its pipeline of cultivated oral microbiome therapeutics.
The transaction, expected to close within 90 days, is subject to negotiation of definitive agreements, Seres’ shareholder approval, and other customary conditions. During the transition, Seres will support the full transfer of VOWST to Nestlé Health Science and ensure continuity of the supply chain through a transition service agreement.
This deal underscores the dynamic nature of the biotech industry, where companies must often make bold moves to secure their financial future and pursue promising research avenues. For Seres Therapeutics, selling VOWST represents both an end and a beginning – closing the chapter on its first FDA-approved product while opening new possibilities in microbiome therapeutics development.
As the microbiome therapeutics field continues to evolve, all eyes will be on Seres to see how this strategic shift plays out in the coming years. The success of this transaction and the company’s future pipeline could have significant implications not just for Seres, but for the broader landscape of microbiome-based treatments.
