Business
Seres Therapeutics Announces Signing of VOWST™ Asset Purchase Agreement with Nestlé Health Science
Upon closing, Seres to receive $175M cash infusion, including an upfront payment, prepayment of a future commercial milestone payment, and an equity
About this update from Seres Therapeutics, Inc.
[{"type":"text","content":"Upon closing, Seres to receive $175M cash infusion, including an upfront payment, prepayment of a future commercial milestone payment, and an equity investment in Seres common stock, less approximately $20M in settlement of net obligations between the Parties; anticipated deal closing in the next 90 days Additional approximately $75M in cash payments are due to Seres in 2025, contingent upon Seres’ compliance with transition obligations, with the potential for additional future commercial milestone payments of up to $275M on the achievement of VOWST net sales targets Seres will fully retire its debt obligations upon closing Based on existing cash, deal economics and operating plans, Seres expects to fund operations into Q4 2025 Going forward, Seres to focus on improving patient outcomes in medically vulnerable populations with next generation cultivated live biotherapeutic candidates, leveraging established VOWST clinical and regulatory successes Pipeline led by SER-155; Phase 1b data in the placebo-controlled Cohort 2 study on track for September CAMBRIDGE, Mass., Aug. 06, 2024 (GLOBE NEWSWIRE) -- Seres Therapeutics, Inc. (Nasdaq: MCRB), (“Seres” or the “Company”), a leading live biotherapeutics company, today announced that it signed an agreement with Société des Produits Nestlé S.A (“Nestlé”) for the sale of its VOWST business to Nestlé Health Science. Upon deal closing, Seres will receive capital infusions, including an upfront payment, a prepaid milestone payment and an equity investment. In addition, Seres is due to receive installment payments in 2025, as well as potential future payments based on VOWST net sales targets. Seres will support ongoing VOWST availability by providing transition services through the first quarter of 2025 and manufacturing support through the end of 2025 (subject to limited extension rights by Nestlé) and will continue to share 50/50 in the profit and loss of the business through the end of 2025. The completion of the transaction, which is subject to Seres’ shareholder approval and other customary conditions, is expected to occur in the next 90 days. “This transaction provides meaningful capital to support Seres’ pipeline advancement and our focus on improving patient outcomes in medically vulnerable populations through the use of cultivated live biotherapeutics,” said Eric Shaff, President and...