Seres Therapeutics (Nasdaq: MCRB), a research stage biotech company seeking to use the human microbiome to treat gut-related illnesses, expanded its losses in its most recent quarter.  The company reported a loss of $27.8 million, or 70 cents per share, and $3 million in revenues for the quarter as it expanded its research and development efforts.  Both numbers missed estimates by large margins as analysts expected a loss of 48 cents per share and $9.7 million in revenues.  Seres had a major setback in late July when its leading drug candidate, SER-109, failed to meet key metrics in a critical Phase III trial.   Since then, the shares have fallen over 70%.

At this point, the only thing we can do is to keep our $7 hard sell stop in place and see what develops.  The company should be able to provide more answers over the next few weeks as it examines its SER-109 data to determine what went wrong. MCRB is well-funded, especially through its relationship with Nestle. It still has multiple clinical trials and has recently signed collaboration agreements for multiple studies with Mayo Clinic and Massachusetts General Hospital. 

Hold MCRB.  Hard Sell Stop at $7.