The decision to halt the SER-155 program comes despite the company submitting a final Phase 2 protocol to the Food and Drug Administration. The candidate was intended to prevent life-threatening infections in patients undergoing stem-cell transplants for blood disorders. While the clinical protocol is finalized, Seres stated it will not invest further in the trial until it secures external funding.
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Seres Therapeutics Shares Sink as Biotech Cuts Jobs to Save Cash
Seres Therapeutics shares tumbled 26% to $10.40 in premarket trading Thursday after the company announced a 30% workforce reduction and the suspension of a key clinical program. The biotech firm is pausing development of its infection-prevention candidate, SER-155, as it maneuvers to extend its financial runway amid a tightening capital environment.
Extending the Financial Runway
The latest layoffs follow a previous 25% staff cut in September, reflecting a deepening effort to stabilize the company's balance sheet. As of Sept. 30, Seres reported having $47.6 million in cash and equivalents. According to the company, these aggressive cost-cutting measures are designed to sustain operations until the end of the third quarter of 2025.In the interim, the company is shifting its primary focus toward early-stage research. This includes:
- Advancing the SER-603 candidate for ulcerative colitis.
- Developing treatments for Crohn's disease.
- Targeting immune checkpoint-related enterocolitis.
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