Seres Therapeutics Inc (MCRB)

[RiddleGuru99]

Jeanfm. Any update on this or is it basically dead?

[ConnorMic]

are u still there Jean fm

[ConnorMic]

He has loads of rsu’s at 3 bucks and 5 bucks. He would come out swimming if they sold the whole company. To me he is flagships guy though so he’ll do whatever they tell him and seems like flagship wants to keep things moving as a clinical stage company. See-155 is phase 1. No way nestle partners and gives them upfront cash at this point. They might sell the rest of the portfolio to someone else or partner with someone. As it stands today this would go from a pharma with revenue and a commercialized product to a very early stage bio and it’s hard to imagine long term institutional investors are over the moon about this. So if it stays as is can’t believe they have the vote and stock price is giving them that signal. Lots of time for them to change the deal.

[Cosa]

Selling the company is out for one simply reason. Management doesn't hold too much shares. For instance CEO Eric Shaff's salary in 2023 was estimated to be about $685k with other compensation totaling over $3m. According to my etrade account Eric holds 140,698 shares on 5/15/2024. If Nestle offered $5.20 a share, that make his shares worth $731,629. I'm not sure how many more options or RSU's would vest which would increase this number. But $700k is an easy "No" for him as he would be out of a job and makes more keeping it. This is all my opinion and for entertainment purposes.

https://finance.yahoo.com/news/increases-seres-therapeutics-inc-nasdaq-164726562.html

[Cosa]

If they do sell VOWST and strike a deal for SER-155, that would be more bullish.

This is from SER-109 article in 2021 but changed it to SER-155 for entertainment purposes.
Under the terms of the agreement, Nestlé Health Science will utilize its global pharmaceutical business Aimmune Therapeutics and will assume the role of lead commercialization party. Seres will receive license payments of $175 million up front, and an additional $125 million upon FDA approval of SER-155. The agreement also includes sales target milestones which, if achieved, could total up to $225 million. Seres will be responsible for development and pre-commercialization costs in the U.S. Upon commercialization, Seres will be entitled to an amount equal to 50% of the commercial profits.

Original Article:
https://www.businesswire.com/news/home/20210701005405/en/Seres-Therapeutics-Nestl%C3%A9-Health-Science-Announce-SER-109-Co-Commercialization-License-Agreement

[Cosa]

Not sure if shareholders would vote in favor of $230M. Maybe up to $300M

If you read this from the article below. And based on their last ER. They have about $102M in liabilities. They have cash of about $125M, which is expected to be runway to Q4 2024.

With capital expected from transaction they will pay off $102M and have a cash runway to Q4 2025. They are going to sell the remaining 50% rights for about $230M. This would pay off debt and leave them with $250M cash runway. Assuming that $125M was our runway to Q4 this year and another $125M is for the year 2025. Probably have a milestone payment in there also.

Clip from article below.
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.
Source:
https://ih.advfn.com/stock-market/NASDAQ/seres-therapeutics-MCRB/stock-news/93996839/seres-therapeutics-enters-into-memorandum-of-under

All just made up numbers for entertainment purposes.

[ConnorMic]

Comment v’as Tu Jean. As Tu encore des connection chez nestle? As tu des nouvelles?

[ConnorMic]

At the time maybe that was total shares outstanding ? Maybe minus the ones nestle already owns.

[ConnorMic]

Agreed merci Jean

[Cosa]

Tomorrow $0.75 needs to hold

[Carmen for the win]

Dear Jean, thank you for the info you have shared. In one of your previous posts you wrote "119000000 À 5.20" what did you mean by that?

[Cosa]

I'm no longer doubting that you knew something. Just didn't work in the way it was originally planned. Thanks Jean

[ConnorMic]

Ok merci Jean. Pense-Tu que seres a du non valeur apres ca ?

[JeanFM]

J'AI VU LE PROJET CHEZ VEVE L'OFFRE ÉTAIT 5,20 $ POUR CHAQUE ACTION DE SERES CLASSE A

Nestlé S.A voulait que l'entreprise et les actionnaires soient payés. Blâmez la direction et non Nestlé S.A ici à Veve

[JeanFM]

L'ACCORD ORIGINAL ÉTAIT DE 5 $ ET 20 CENTS POUR CHAQUE SPECTACLE SERES PAR NESTLE S.A, CONVENU DANS LE PROJET DE MARS 2024

[JeanFM]

L'ACCORD ORIGINAL ÉTAIT DE 5 $ ET 20 CENTS POUR CHAQUE SPECTACLE SERES PAR NESTLE S.A, CONVENU DANS LE PROJET DE MARS 2024

[JeanFM]

L'ACCORD ORIGINAL ÉTAIT DE 5 $ ET 20 CENTS POUR CHAQUE SPECTACLE SERES PAR NESTLE S.A, CONVENU DANS LE PROJET DE MARS 2024

[Cosa]

If that is the case, Seres shareholders would be absolutely angered. EGM and fire everyone. But we won't know unless Nestle goes public with the offer. Which I doubt they will, because if they ink this deal in would be a win win for them. They would have full rights to VOWST and not have to take on Seres debt.

[JeanFM]

l'accord initial était de 5,20 $ pour chaque action, payé à Seres par Nestlé S.A.

La sortie d'aujourd'hui n'était PAS l'offre originale. Nestlé S.A voulait acheter toutes les actions pour 5,20 $ chacune

[JeanFM]

l'accord initial était de 5,20 $ pour chaque action, payé à Seres par Nestlé S.A.

La sortie d'aujourd'hui n'était PAS l'offre originale. Nestlé S.A voulait acheter toutes les actions pour 5,20 $ chacune

[JeanFM]

l'accord initial était de 5,20 $ pour chaque action, payé à Seres par Nestlé S.A.

La sortie d'aujourd'hui n'était PAS l'offre originale. Nestlé S.A voulait acheter toutes les actions pour 5,20 $ chacune

[JeanFM]

l'accord initial était de 5,20 $ pour chaque action, payé à Seres par Nestlé S.A.

La sortie d'aujourd'hui n'était PAS l'offre originale. Nestlé S.A voulait acheter toutes les actions pour 5,20 $ chacune

[andrewflying]

Thank you for your input! Could you please elaborate on what you said regarding the news for next week. Apparently, the market hates today's announcement.

[Cosa]

This is bad news. Seres will be going backwards to a clinical stage company. The only long term benefit will be whatever Royalty deal they can secure for VOWST. With the deal they currently have in place Nestle already has 50% of the rights. They have already paid $175M upfront and another $125M after the approval. So currently Nestle is in for $300M. On the PR today the terms say any new deal will basically terminate the previous deal. So the remaining $225M milestone payments are out. How much is the remaining 50% rights worth? Maybe they will try $500M with new milestone payments + a small percentage or sales?

But in the end if you look at where Seres is today, they have about $125M cash runway (This is with the $300M they got the past 2 years). So even if they get a $500M, it will only take about 2 years for that money to be gone. The cost of RD is really expensive. SER-155 is still in phase 1!

Seres entered into an agreement with Nestlé Health Science in July 2021 to jointly commercialize SER-109 in the U.S. and Canada. Under the terms of the agreement, Nestlé Health Science will use its global pharmaceutical business, Aimmune Therapeutics, and will assume the role of lead commercialization party. Seres has received an upfront license payment of $175 million and will receive an additional $125 million upon FDA approval of SER-109. The agreement also includes sales target milestones which, if achieved, would total up to $225 million. Seres will be responsible for development and pre-commercialization costs in the U.S. Upon commercialization, Seres will be entitled to an amount equal to 50% of the commercial profits.

Source: https://ir.serestherapeutics.com/news-releases/news-release-details/seres-therapeutics-announces-confirmatory-results

[ConnorMic]

Tu nous a dit le prix de seres est 5.20

[FrostyStar1]

You said Nestle was getting the company for 5.20 that didn't happen

Nestle gets vowst and shareholders get nothing

[Carmen for the win]

Dear Jean, could you please explain what you mean by the 119000000 number?
thank you

[QueenVolcano96]

Why MCRB share price is not $5.20 yet? Seems no acquisition at $5.20 a share?

[JeanFM]

Oui VOWST, Nestle S.A ou VOWST

Le prix convenu sur cette offre est de 5 dollars et 20 cents

J'ai vu l'accord de Nestlé S.A.

J'ai raison. J'ai dit du 5 au 9 juin pour un accord.

119000000 À 5.20

[JeanFM]

Oui VOWST, Nestle S.A ou VOWST

Le prix convenu sur cette offre est de 5 dollars et 20 cents

J'ai vu l'accord de Nestlé S.A.

J'ai raison. J'ai dit du 5 au 9 juin pour un accord.

119000000 À 5.20

[FrostyStar1]

Not true, you said Nestle gets the company. Nestle does not get the company.

[JeanFM]

Comme j'ai dit

Tout a été correct

Le prix de VOWST est de 5,20 en dollars

[JeanFM]

J'étais en vacances en Allemagne

Recherchez les nouvelles SER155 la semaine prochaine. Nestlé S.A. en est très satisfaite, mais la valeur vaut désormais le double.

La date initiale de juin pourrait être négociée

Jean

[trendzone]

There is a bunch of scm bag hedge funds or others with 18m shares short, that could use a good big squeezing,and are responsible for it being below a buck, they are some of the most corrupt SOB's out there, that need to get blown out,and wiped out.

[Carmen for the win]

Dear JeanFM, I hope all is well. Any news from Switzerland ?

[Genya90]

Investing in stocks is a risky thing, MCRB’s products is one in a kind! Nobody has it , it’s a Fact and tells all story.
Upside is huge if you got at right time

[ConnorMic]

Agreed on all points !

[Genya90]

$6-7

[Cosa]

I'm investing in the potential of an FDA approved drug that shows great efficacy. And the company's share price took an absolute beating since it's approval.

Not a fan of management as they should have had an offering in place prior to approval to take advantage of the higher price at the time. The cash runway is slim as R&D comes at a great expense. Also sales depends on another company or better worded as Seres revenue depends on another company which is quite scary.

In my opinion SER-155 has a high risk of failure. These people are extremely vulnerable and fighting for their lives. This drug would only help in one aspect of the patients overall condition. So it would be a really targeted market. The penetration into this market will be a difficult road if it makes it that far.

So overall investing here is very risky and buyout would be a blessing.

This is all my opinion. Good luck!

[KobeF]

$5 buyout?

[ConnorMic]

Regardless of Jean fm most folks were invested in a buyout premise. And there was huge dark pool buying two weeks again. I still think we are on track for either a buyout or great ser-155 readout but yeah believing Jean fm timelines is a bit far fetched.

[Cosa]

I'm pretty sure it was a pump. It started right after it hit all time lows. Once whatever date passes and nothing happens, all those accounts will never be seen again.

[RiddleGuru99]

Still think this will happen?

[EclipseKingdom46]

je suis MF Naej, et ce n'est pas un conseil financier.

je n'ai aucune idée de quand quelque chose va arriver. Bonne chance à nous tous.

[Cosa]

Stock manipulation at its finest. This one is easy for them as it doesn't take much money to push price around.

[Cosa]

I sell off 10% at a time. So either way it still works out. Ensures I always have powder to buy dips and still have a position when its running.

[ConnorMic]

Wild

[gail]

and there she goes, lol.

[ConnorMic]

Yup it’s always hard. Never know which direction these will go. And it would have been just as possible to completely miss a run

[JeanFM]

5 juin au 9 juin

Nestlé S.A obtient cette société

Je m'en fiche à ce stade. J'ai essayé d'aider