Seres Therapeutics (MCRB) Stock: Headed Up On Collaboration With AstraZeneca (AZN)

Seres Therapeutics Inc (NASDAQ: MCRB) is making a run for the top in the market this morning, and for good reason. The company announced that it entered into a collaboration with AstraZeneca.

Of course, the news excited investors who are pushing the stock on a run for the top. Today, we’ll talk about:

  • The collaboration;
  • what we’re seeing from MCRB stock as a result; and
  • what we’ll be watching for ahead.

MCRB Stock Runs For The Top On AZN Partnership

As mentioned above, Seres Therapeutics is having a great day in the market today after announcing a collaboartion with AstraZeneca. The news came via press release early this morning.

In the press release, MCRB said that that the collaboration is a three-year research agreement. The agreement will focus on advancing mechanistic understanding of the microblome in augmenting the efficacy of cancer immunotherapy. This includes the potential synergy with AZN compounds.

In the release, the company said that preclinical and early clinical evidence suggests that the composition of the gastrointestinal microblome impacts clinical response to checkpoint inhibitor immunotherapy. The company also said that the data supports the hypothesis that modification of the microblome may improve outcomes.

Through the collaboration, the companies will evaluate microblome-based approaches as a predictor for which patients may respond best to certain cancer immunotherapies. Also, SER-401, an investigational microblome therapeutic, may be studied in combination with AstraZeneca compounds. The companies intend on targeting various cancers with this combination treatment.

Under the terms of the agreement, AZN will provide MCRB with $20 million in three equal installments over two years. The first of these payments is due at the start of the agreement.

AZN has also agreed to reimburse the company for research activity related to the collaboration. While Seres will maintain rights to oncology targeted microblome therapeutic candidates, AZN will obtain the option to negotiate for rights to those programs and other invetions rising through the collaboration.

In a statement, Eric Shaff, President and CEO at MCRB, had the following to offer:

We are very pleased to be collaborating with AstraZeneca, a global leader in oncology, to advance the development of potential microbiome-based therapies for cancer. Through the activities under this collaboration and in our SER-401 Phase 1b clinical study in metastatic melanoma, we hope to meaningfully advance our understanding of the potential for microbiome therapeutics to magnify the impact of cancer immunotherapy.

The above statement was followed up by Jean-Charles Soria, M.D., Ph.D., SVP of R&D at AZN. Here’s what he had to offer:

Our new collaboration with Seres Therapeutics represents an important opportunity to advance our understanding of the relationship between the microbiome and the immune system’s ability to respond to cancer therapy.

Despite progress in the field of immunotherapy, we are only at the tip of the iceberg. Too many patients are still unable to benefit from existing therapies, so we must continue following the science in pursuit of new and innovative solutions.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. When it comes to Seres, the news proved to be overwhelmingly positive.

After all, AstraZeneca is a massive company and a great partner to have. Also, the collaboration will lead to non-dilutive funding, the type that investors love to see.

So, it’s not surprising to see that investors are excitedly pushing the stock on a run for the top. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currnetly (11:29), MCRB is trading at $6.92 per share or 35.44% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on MCRB. In particular, we’re interested in following the story surrounding the company’s work with AZN and excited to learn about the potential products that result of the collaboration. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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