Finch Therapeutics Announces Workforce Restructuring to Focus Resources on Key Development Programs
April 19 2022 - 8:30AM
Finch Therapeutics Group, Inc. (“Finch” or “Finch Therapeutics”)
(Nasdaq: FNCH), a clinical-stage microbiome therapeutics company
leveraging its Human-First Discovery® platform to develop a novel
class of orally administered biological drugs, today announced
plans to reduce its workforce by approximately 20%. This workforce
reduction will allow the company to focus its financial resources
on its recurrent C. difficile infection (CDI) and autism spectrum
disorder (ASD) development programs, two wholly-owned programs that
Finch is prioritizing, along with its Takeda-partnered work in
inflammatory bowel disease (IBD). Finch plans to provide guidance
on the expected extension of the Company’s cash runway as a result
of the restructuring when it reports its first quarter 2022
results.
“We are deeply grateful to the impacted team members for their
many contributions to Finch’s mission and this new field of
medicine,” said Mark Smith, PhD, Chief Executive Officer of Finch
Therapeutics. “This was a difficult decision; however, we believe
this decision will put us in a stronger financial position to
execute upon our strategic priorities and continue to deliver on
our mission to harness the microbiome to serve patients and their
families.”
This workforce reduction follows Finch’s recent announcement
that it has paused its chronic hepatitis B program and the
announcement of a clinical hold by the FDA on its investigational
new drug application for CP101 and associated delays to Finch’s
recurrent CDI and ASD programs. In response to the clinical hold,
which is related to Finch’s SARS-CoV-2 donor screening protocols
and associated informed consent language, Finch recently submitted
a complete response to the FDA and is awaiting feedback.
About Finch Therapeutics
Finch Therapeutics is a clinical-stage microbiome therapeutics
company leveraging its Human-First Discovery® platform to develop a
novel class of orally administered biological drugs. With the
capabilities to develop both complete and targeted microbiome
therapeutics, Finch is advancing a rich pipeline of candidates
designed to address a wide range of unmet medical needs. Finch’s
lead candidate, CP101, is in late-stage clinical development for
the prevention of recurrent C. difficile infection (CDI) and has
received Breakthrough Therapy and Fast Track designations from the
U.S. Food and Drug Administration (FDA). The investigational new
drug application for CP101 is on clinical hold while Finch awaits
feedback from the FDA on the complete response letter that the
company recently submitted related to its SARS-CoV-2 donor
screening protocols and associated informed consent language. Finch
is also developing FIN-211 for children with autism spectrum
disorder and significant gastrointestinal symptoms. Finch has a
partnership with Takeda focused on the development of targeted
microbiome therapeutics for inflammatory bowel disease.
Human-First Discovery® is a registered trademark of Finch
Therapeutics Group, Inc.
Forward-Looking Statements:
Statements contained in this press release regarding matters
that are not historical facts are “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995, as amended. Words such as "anticipates," "believes,"
"expects," "intends," "plans," "potential," "projects," "would" and
"future" or similar expressions are intended to identify
forward-looking statements. These forward-looking statements
include, but are not limited to, statements regarding: the timing
associated with Finch’s reduction in force; the likelihood that the
clinical hold will be lifted and timing of any such resolution;
Finch’s communication plans with the FDA related to the clinical
hold and the timing for receiving written correspondence from the
FDA; Finch’s ability to realign its financial resources on the
development of its CDI and ASD programs and to execute on its
strategic priorities, including the development of its lead product
CP101. Because such statements are subject to risks and
uncertainties, actual results may differ materially from those
expressed or implied by such forward-looking statements. These
risks and uncertainties include, among others: Finch’s ability to
successfully implement the workforce reduction; the impact of the
workforce reduction on Finch’s business; the risk that the Company
may not be able to address the FDA’s concerns regarding SARS-CoV-2
testing protocols quickly or at all; and Finch’s ability to
successfully develop a novel class of orally administered
biological drugs and its dependence on the success of its lead
product candidate, CP101, including its ability to resolve the FDA
clinical hold on Finch’s investigational new drug application for
CP101. These and other risks are described more fully in Finch’s
filings with the Securities and Exchange Commission (“SEC”),
including the section titled “Risk Factors” in Finch’s Annual
Report on Form 10-K for the year ended December 31, 2021 filed with
the SEC on March 31, 2022, as well as discussions of potential
risks, uncertainties, and other important factors in Finch’s other
filings with the SEC. All forward-looking statements contained in
this press release speak only as of the date on which they were
made. Except to the extent required by law, Finch undertakes no
obligation to update such statements to reflect events that occur
or circumstances that exist after the date on which they were
made.
Investor Contact: Stephen Jasper Gilmartin
Group (858) 525-2047 stephen@gilmartinir.com
Media Contact: Jenna Urban Berry & Company
Public Relations (212) 253-8881 jurban@berrypr.com
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