Seres Therapeutics, Inc. Q1 FY2025 earnings call

• Advancing SER-155 into the next stage of development in allo-HSCT is the top priority, with progress towards initiating the next clinical study. Phase 1b study showed 77% relative risk reduction in bloodstream infections. - Attended European Society for Blood and Marrow Transplantation Conference, received best Clinical Poster award, and got encouraging commentary. - Exploratory biomarker data supports SER-155's mechanisms of action. - Guided by FDA feedback, plan to submit Phase 2 study protocol. - Actively engaging in partnership discussions. - Cash position and compliance with NASDAQ after reverse stock split discussed.

Seres reported net income from continuing operations of $32.7 million in Q1 2025, compared to a net loss of $32.9 million in Q1 2024. Research and development expenses were $11.8 million in Q1 2025, down from $19.5 million in Q1 2024. General and administrative expenses were $11.9 million in Q1 2025, lower than $14.9 million in Q1 2024. As of March 31, 2025, cash and cash equivalents were $58.8 million. There is no detailed breakdown of product segment revenue contributions provided.

• Expect to fund operations into Q1 2026 based on current cash balance, expected Nestle installment payment in July. - Exploring sources of capital in addition to partnerships for Phase 2 study funding.

Forward-looking statements are subject to risks and uncertainties discussed in SEC filings. No specific operational failures or detailed risks elaborated in the call beyond general disclaimers on forward-looking statements.

Q: Are the partnership discussions being gated by progress the next steps for SER-155?

A: Eric Shaff said partnership is a key gating item for initiating the study, but they are moving forward with other study preparation steps.

Q: Can you outline proposed powering assumptions for the Phase 2 study and clarify adaptive design?

A: Eric Shaff and Dennis Walling discussed that the design includes an interim analysis to get early efficacy and safety data, with optionality for using data to inform future studies.

Q: Any changes in FDA dialogue? Confidence in partnership discussions?

A: Eric Shaff stated interactions with FDA have been constructive, and they are making progress in partnership discussions.

Q: Interim analysis optionality and Phase 3 path?

A: Eric Shaff and Dennis Walling explained there is optionality from the interim analysis, and data from Phase 2 will inform potential Phase 3.

Q: Follow-up in Phase 2 study?

A: Dennis Walling and Matthew Henn mentioned the primary endpoint is bloodstream infection reduction, with protocol still being finalized and data collection for potential efficacy signals.