Seres Therapeutics announced great initial sales data but also a company restructuring. Is it preparing for an upcoming acquisition?
November 3, 2023
Seres Therapeutics (Nasdaq: MCRB) is preparing to be acquired. Or at least that’s certainly what it looks like.
The company’s CDI infection treatment drug VOWST just won FDA approval earlier this year. Earlier this morning, it announced the initial sales of VOWST in its third quarter totaled $7.8 million.
That exceeded its internal sales expectations and appears to be off to a great start. Seres went on to quantify the drug’s inaugural quarter of commercial sales:
Yet in the very next breath, Seres immediately rained on its own parade. It announced it would be restructuring its entire organization and laying off 41% of its employees.
It feels the need to do so in order to “substantially reduce expenses and prioritize the commercialization of VOWST“. And due to the challenging environment for drug developers, it believes “concentrating our resources on VOWST offers an attractive opportunity for targeted revenue growth, while operating in a more capital efficient manner.”
As a bit of context, Seres co-developed VOWST with its partner Nestle Health Services. Nestle is a much larger organization, who had the financial resources needed to fund the trials. Now, Nestle also has the sales force and relationships with doctors to get the drug prescribed.
We share what Seres’ recent announcements will mean for investors.
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