RestructuringJun 5, 2026, 07:11 AM
Seres to receive $25M from Nestlé; Restructures Lease, Extends Cash Runway
AI Summary
Seres Therapeutics announced two transactions to strengthen its balance sheet and extend its cash runway. The company will receive $25 million from Nestlé Health Science in two installments by October 2026, buying out potential future VOWST™ net sales-based milestones. Additionally, Seres restructured its lease agreement for its Cambridge, MA facility, reducing its leased space by approximately 45,832 square feet and decreasing long-term lease obligations by about $33.9 million. These actions are projected to extend the company's operating cash runway well into the first quarter of 2027.
Key Highlights
- Nestlé Health Science to pay Seres $25 million in two equal installments.
- First installment of $12.5 million due July 1, 2026, second on October 1, 2026.
- Terminates Nestlé's obligations for potential $125 million and $150 million sales milestones.
- Surrendered approximately 45,832 sq ft of office and lab space in Cambridge, MA.
- Remaining 36,882 sq ft lease term extended to December 31, 2036.
- Aggregate decrease of approximately $33.9 million in long-term lease payments.
- Paid a $4.5 million termination fee for the early lease termination.
- Permitted Landlord to draw existing $6.3 million letter of credit.
- Expected operating cash runway extended well into the first quarter of 2027.
Price Impact
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