Seres Therapeutics Pauses Key Drug Study, Cuts Jobs To Save Cash
Seres Therapeutics Inc. (NASDAQ:MCRB) shares are down during Thursday’s premarket session following the company’s announcement of a strategic shift in its operations.
The stock’s decline comes as the company is prioritizing emerging programs in inflammatory and immune diseases, which has raised concerns among investors about its current pipeline and funding strategies.
Lead Drug Update
Seres has finalized the protocol for its Phase 2 study of SER-155 in patients undergoing allogeneic hematopoietic stem cell transplant (allo-HSCT) and is pausing further investment in this program while seeking funding.
The company said its operational focus is on high-value earlier-stage pipeline programs while continuing to seek funding for the SER-155 Phase 2 study.
In addition, Seres is set to support the read-out of clinical results from the fully enrolled Investigator-sponsored SER-155 study in immune checkpoint-related enterocolitis (irEC), with results expected in the early second quarter of 2026.
The company’s strategy moving forward will prioritize advancing its early-stage programs, including SER-603, which targets inflammatory and immune indications such as ulcerative colitis, Crohn’s disease, and irEC. Discussions are ongoing with counterparties related to potential collaborations in these areas.
This shift in focus may provide opportunities for collaboration and funding, but it has also raised questions about the company’s immediate future and operational viability.
Workforce Layoff
The company also announced a workforce reduction of approximately 30%, aimed at extending its cash runway through the third quarter of 2026, allowing it to focus on advancing its early-stage live biotherapeutic programs for inflammatory and immune diseases and pursue potential collaborations.
Earlier, with a cash balance of $47.6 million, the company expected to fund operations through the second quarter of 2026.
The broader market experienced a mixed performance on the previous trading day, with the Nasdaq gaining 0.32% and the S&P 500 futures rising 0.3%. Seres’s decline stands out against this backdrop, indicating that company-specific concerns are influencing its stock performance despite a generally positive market environment.
Seres Therapeutics Technical Bearish Trend
Currently, Seres Therapeutics 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% and is positioned closer to its 52-week lows than highs, reflecting ongoing challenges in its operational strategy.
The RSI is at 42.50, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold. Meanwhile, MACD is below its signal line, indicating bearish pressure on the stock.
The combination of neutral RSI and bearish MACD suggests mixed momentum for Seres Therapeutics.
- Key Resistance: $13.50
- Key Support: $11.00
MCRB Price Action: Seres Therapeutics shares were down 16.25% at $11.80 during premarket trading on Thursday, according to Benzinga Pro data.
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