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CAMBRIDGE, MA – Seres Therapeutics, Inc. (NASDAQ:MCRB), a biopharmaceutical company specializing in pharmaceutical preparations, announced on Monday the appointment of Dr. Hans-Juergen Woerle as a new Class III director, effective immediately.
This move expands the company’s Board of Directors to nine members. According to InvestingPro data, the company faces significant financial challenges, with an EBITDA of -$36.4 million in the last twelve months and a concerning cash burn rate.
Dr. Woerle, 59, brings extensive experience to Seres Therapeutics, having served as the Chief Medical (TASE:PMCN) Officer and Chief Scientific Officer at Nestlé Health Science S.A. since November 2018. His previous roles include a tenure on the board of Cerecin Inc., a clinical-stage biotechnology company, and an ongoing position on the board of Enterome, SA, another clinical-stage biopharmaceutical company.
The appointment comes as the company’s stock has experienced significant volatility, with a -28% return over the past year and trading near $0.79, according to InvestingPro data. As a board-certified physician with specializations in internal medicine and endocrinology, Dr. Woerle also holds an adjunct professorship at the University of Ulm.
The appointment follows a rights agreement with Société des Produits Nestlé S.A. ("Nestlé"), outlined in a Securities Purchase Agreement dated September 30, 2024. Nestlé, which owns at least ten percent of Seres Therapeutics’ outstanding common stock, exercised its right to designate a director for the Board, selecting Dr. Woerle for the role.
Dr. Woerle will join the Science and Clinical Development Committee of the Board and receive standard compensation for non-employee directors. This includes an annual retainer of $45,000, a committee service retainer of $7,500, and an initial stock option award to purchase 120,000 shares of common stock at $0.8056 per share, the closing price on the date of grant. The stock options will vest over four years or immediately before a change in control, subject to continued service on the Board.
In addition to his compensation, Dr. Woerle will enter into the company’s standard indemnification agreement for directors and officers.
The announcement, based on a press release statement, reflects Seres Therapeutics’ commitment to strengthening its leadership team with experienced professionals in the pharmaceutical industry.
With gross profit margins at -10% and a market capitalization of $135 million, the company faces significant challenges ahead. For deeper insights into Seres Therapeutics’ financial health and future prospects, including 10 additional ProTips and comprehensive analysis, visit InvestingPro.
In other recent news, Seres Therapeutics, a clinical-stage biotherapeutic company, has reported significant clinical and financial milestones in its Q3 2024 earnings call. Despite a net loss of $51 million for the quarter, the company managed to retire debt and streamline operations following the sale of its VOWST business to Nestlé Health Science. This transaction provided Seres with an upfront cash payment of $50 million and an additional installment of $25 million expected in July 2025.
In addition to this, the FDA has awarded Breakthrough Therapy designation to Seres’ investigational drug, SER-155. The drug, which aims to reduce bloodstream infections in patients undergoing allogeneic hematopoietic stem cell transplant, showed a 77% relative risk reduction in bacterial bloodstream infections in a Phase 1b study. The company is preparing to meet with the FDA in the first quarter of 2025 to discuss the next clinical study of SER-155.
These are the latest developments in Seres Therapeutics’ ongoing efforts to improve patient outcomes with its pipeline of live biotherapeutic products. With the financial boost from Nestlé Health Science and positive clinical trial results for SER-155, the company is well-positioned for future research and development initiatives.
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