Seres Therapeutics(MCRB) - 2023 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported a net income of $46.6 million for Q2 2023, compared to a net loss of $64.7 million for the same period in 2022 [89] - VOWST net sales for the partial commercialization period during Q2 was $1.6 million, based on 105 units sold [41][149] - The company ended Q2 2023 with $229.5 million in cash, cash equivalents, and investments, up from $181.3 million at the end of 2022 [38] Business Line Data and Key Metrics Changes - VOWST, the first FDA-approved orally administered microbiome therapeutic, is in its early commercialization phase with positive initial results [1][55] - Approximately 43% of the 282 new patient starts were dispensed via free drug programs, indicating strong utilization of patient assistance initiatives [40] - The gross to net reduction for VOWST was estimated at 15%, primarily due to returns reserves, prompt payment discounts, and patient copay assistance [90] Market Data and Key Metrics Changes - The company is seeing healthy product demand from a broad set of healthcare practitioners and across the recurrent CDI patient pool, including patients with their first recurrence [55][98] - The company has received prescription enrollment forms from over 480 unique prescribers, with approximately 70% from gastroenterology [69] Company Strategy and Development Direction - The successful commercialization of VOWST is the company's top corporate priority, with expectations that it will become an important financial driver over time [71] - The company is focused on scaling healthcare provider education, creating a positive customer experience, establishing payer coverage, and optimizing hospital outflow [80] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the continued acceleration of VOWST uptake and its potential as a financial driver for the company [2] - The company anticipates that the approval of VOWST will lead to a steady pattern of purchases by Nestle to meet market demand [42] Other Important Information - The company closed one of its three donor collection facilities to reduce costs, with savings expected to be realized in 2024 [108][129] - The company is actively engaged with the three largest pharmacy benefit managers (PBMs) to build coverage for VOWST [100] Q&A Session Summary Question: Can you talk about the current timing between prescription enrollment forms and new patient starts? - Management noted that the majority of patients seeking access to VOWST are successfully navigating the medical exception process, with demand for new patients building over time [5][115] Question: What is the expected scale of cost savings from closing a donor facility? - Management indicated that savings will be more of a 2024 item, with some pieces potentially realized at the end of 2023 [7][129] Question: Can you provide guidance on cash runway and gross to net expectations? - Management did not provide specific runway guidance but emphasized a focus on reducing spend and generating value from the VOWST launch [119][141]