CAMBRIDGE, MA—Lisa von Moltke, Executive Vice President and Chief Medical Officer of Seres Therapeutics, Inc. (NASDAQ:MCRB), has reported the sale of company stock valued at approximately $2,991. The sale, conducted on October 28, involved 4,334 shares of Seres Therapeutics' common stock at a weighted average price of $0.6902 per share.
This transaction was made under a pre-established trading plan, known as Rule 10b5-1, which was adopted by von Moltke on July 2, 2023. The sale was intended solely to cover taxes related to the vesting of restricted stock units (RSUs).
On October 27, von Moltke acquired 13,744 shares through the vesting of RSUs, which were granted as part of an award on February 3, 2023. This transaction did not involve a cash exchange, as each RSU represents a contingent right to receive one share of common stock. Following these transactions, von Moltke holds 30,423 shares directly.
In other recent news, Seres Therapeutics has been the subject of several key developments. The company recently reported positive data from its Phase 1b trial of SER-155, leading TD Cowen to maintain a Buy rating on the company's shares. The study demonstrated a significant reduction in bacterial bloodstream infections and systemic antibiotic use in patients undergoing allogeneic hematopoietic stem cell transplantation.
In financial news, despite a reported net loss of $32.9 million, Seres Therapeutics has sold its VOWST assets to Nestle Health Science for $155 million. This move is expected to improve the company's financial position and extend its cash runway. The proceeds from the sale will be used to retire existing debt and further the development of Seres' live biotherapeutic product pipeline.
However, JPMorgan (NYSE:JPM) recently downgraded Seres Therapeutics' stock from Neutral to Underweight due to concerns about the company's growth potential. Despite the financial relief provided by the Vowst transaction, the market is waiting for further developments that could potentially reinvigorate investor interest in Seres Therapeutics.
Additionally, shareholders have expressed concerns over the company's decision to reject a takeover bid from Nestlé S.A., questioning the sale of its VOWST business. The company, however, received approval to sell its VOWST unit to Nestlé Health Science, a move expected to conclude soon. These are the recent developments involving Seres Therapeutics.
InvestingPro Insights
As Lisa von Moltke's recent stock transaction unfolds, it's crucial to consider Seres Therapeutics' broader financial landscape. According to InvestingPro data, the company's market capitalization stands at $131.51 million, reflecting its current position in the biotech sector.
InvestingPro Tips highlight some concerning trends for Seres Therapeutics. The company is "quickly burning through cash" and "operates with a significant debt burden." These factors may explain the recent stock sale by the executive, albeit for tax purposes. Additionally, the stock "has taken a big hit over the last week," with a 1-week price total return of -1.46% as of the latest data.
The company's financial health appears precarious, with a negative gross profit of -$94.3 million in the last twelve months as of Q2 2024. This aligns with another InvestingPro Tip indicating that Seres "suffers from weak gross profit margins." The revenue for the same period was just $0.37 million, with a staggering revenue decline of -99.71%.
Investors should note that analysts do not anticipate the company to be profitable this year, according to InvestingPro Tips. This forecast is consistent with the reported basic EPS (Continuing Operations) of -$1.17 for the last twelve months.
For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Seres Therapeutics, providing a deeper understanding of the company's financial position and market performance.
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