Seres Therapeutics announced it has partnered with Nestlé Health Science to fund research and development and expand marketing of its therapeutic candidates for Clostridium difficile infection and inflammatory bowel disease outside of North America.
“Nestlé Health Science is an ideal partner for Seres in a wide range of global markets, where its vast reach and long-standing GI focus should help drive the successful adoption of our lead microbiome therapies,” Roger J. Pomerantz, MD, president, CEO and chairman of Seres, said in a press release. “With this transformational transaction, we are pleased that significant value was placed not only on our C. difficile candidates, but also on the IBD franchise, which underscores the strong potential of our microbiome platform to address a wide range of challenging diseases across multiple areas in medicine.”
In exchange for commercial rights in global markets outside North America to SER-109 (which has received orphan drug and breakthrough therapy designations from the FDA) and SER-262 for C. difficile infection and SER-287 and SER-301 for IBD, Nestlé will provide Seres with a $120 million up-front cash payment and additional contingent payments for development and sales milestones, as well as tiered royalties on sales for all products “ranging from the high single digits percentages up to the high teens,” according to the press release. Seres expects the up-front payment will contribute to funding late-stage development of its lead programs and help drive growth of its microbiome-based therapeutics pipeline.
Nestlé Health Science will back development initiatives, including 33% of funding for potential global phase 3 studies of SER-287, SER-301 and SER-262. Seres expects it will receive $30 million in milestone payments this year from a phase 1b study of SER-262 for primary C. difficile infection and a phase 3 trial of SER-109 for recurrent C. difficile infection.
Nestlé Health Science made equity investments in Seres in January and July of last year, according to the press release. Seres will retain commercial rights to its product candidates in the U.S. and Canada where it plans to develop its own commercial organization.
“Seres is leading the development of microbiome therapies with the potential to address a wide range of diseases of high unmet medical need, and we are thrilled to collaborate together to ensure that GI-focused products reach the best outcome for patients,” Greg Behar, CEO of Nestlé Health Science, said in the press release. “By correcting the fundamental microbiome dysbiosis that is the root cause of many diseases, Seres is creating a profoundly new and important way of treating many conditions that are inadequately managed through current approaches. In essence, Seres is leading the creation of an entirely new field within medicine.”
The full potential value of the agreement exceeds $1.9 million if all products are approved and successfully commercialized, according to the press release.
Disclosures: Behar is an employee of Nestlé Health Science and Pomerantz is an employee of Seres.