Seres Therapeutics enters MOU for Vowst asset sale to Nestle Health Science

Seres Therapeutics announced that it has entered into a non-binding memorandum of understanding with Nestle Health Science for the sale of Seres’ VOWST assets that will provide Nestle Health Science with full VOWST product and related intellectual property rights. Under the terms of the pending agreement, Seres is due to receive capital infusions, including an upfront payment. Seres expects to complete the transaction within the next 90 days, subject to the negotiation of definitive agreements, Seres’ shareholder approval, and other customary conditions. In July 2021, Seres entered a license agreement with Nestle Health Science that granted a co-exclusive license to develop and commercialize VOWST. In April 2023, VOWST obtained FDA approval to prevent the recurrence of Clostridioides difficile infection in adults following antibacterial treatment for recurrent CDI, followed by commercial launch in June 2023 led by Nestle Health Science. Under the pending agreement, Nestle Health Science will obtain full ownership of the product. Seres will support the full transition of VOWST to Nestle Health Science and continuity of the supply chain through a customary transition service agreement. Seres expects to use the capital from this transaction to fully retire its senior secured debt facility with Oaktree Capital Management, and support the further advancement of SER-155 and its other cultivated microbiome product candidates. Based on Seres’ current cash, its future operating plans, and the capital expected to be obtained from the transaction, the company anticipates being able to extend its cash runway into Q4 2025, subject to performance under the transition services agreement.