Shares of Seres Therapeutics Inc. (NASDAQ: MCRB) experienced a significant decline during Thursday’s premarket session, following the company’s announcement of a strategic shift aimed at prioritizing its emerging programs in inflammatory and immune diseases. This decision has raised concerns among investors regarding the future of its current pipeline and funding strategies.
Seres Therapeutics has completed the protocol for its Phase 2 study of SER-155, which targets patients undergoing allogeneic hematopoietic stem cell transplant (allo-HSCT). However, the company has decided to pause further investment in this program while it seeks additional funding. The focus will now be on advancing earlier-stage pipeline programs that hold higher value, while also supporting the read-out of clinical results from the fully enrolled Investigator-sponsored SER-155 study in immune checkpoint-related enterocolitis (irEC). Results from this study are anticipated in the early part of 2026.
New Strategic Focus and Workforce Reduction
In a significant shift in strategy, Seres aims to concentrate its efforts on early-stage programs such as SER-603, which addresses inflammatory and immune conditions including ulcerative colitis, Crohn’s disease, and irEC. Ongoing discussions are underway regarding potential collaborations to support these initiatives. While this new direction may open avenues for partnership and funding, it has also generated questions about the immediate viability and operational sustainability of the company.
To extend its financial runway through the third quarter of 2026, Seres Therapeutics announced a workforce reduction of approximately 30%. Earlier, the company reported a cash balance of $47.6 million, which was expected to fund operations through the second quarter of 2026. This reduction in staff is part of a broader strategy to focus resources on advancing live biotherapeutic programs for inflammatory and immune diseases.
Market Reaction and Stock Performance
The broader market exhibited mixed performance on the previous trading day, with the Nasdaq gaining 0.32% and S&P 500 futures rising 0.3%. Despite this positive environment, Seres Therapeutics’ stock decline stands out, suggesting that company-specific concerns are heavily influencing its performance.
As of Thursday’s premarket trading, shares of Seres Therapeutics were down 16.25%, trading at $11.80, according to data from Benzinga Pro. Currently, the stock is trading 24.4% below its 20-day simple moving average (SMA) and 33% below its 100-day SMA, indicating a bearish trend. Over the past 12 months, the stock has decreased by 13.86%, positioning it closer to its 52-week lows.
Technical indicators reveal mixed signals, with the Relative Strength Index (RSI) at 42.50, suggesting neutral territory, while the Moving Average Convergence Divergence (MACD) remains below its signal line, indicating bearish pressure. This combination points to a complex momentum situation for Seres Therapeutics as it navigates its strategic transition.
Investors will be closely monitoring the developments surrounding the company’s funding strategies and operational adjustments in the weeks ahead.
