Finch Therapeutics Provides Business Update
September 01 2022 - 8:00AM
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 37% as part of an
ongoing strategic review of its business and portfolio. This
decision follows Finch’s recent announcement that it is assessing
the financial and strategic impact of Takeda’s decision to
discontinue its inflammatory bowel disease (IBD) collaboration with
Finch.
“Following the recent discontinuation of our IBD collaboration
with Takeda, coupled with the current capital market environment,
we are evaluating our strategy across our entire portfolio and have
made the difficult decision to reduce our workforce,” said Mark
Smith, PhD, Chief Executive Officer of Finch Therapeutics. “As part
of this ongoing review, we have decided to suspend efforts to
initiate the Phase 1 trial of our IND-ready candidate FIN-211 while
we explore opportunities to leverage clinical data from ongoing
third-party studies to inform our autism program strategy going
forward.” Dr. Smith continued, “I’d like to extend my sincere
gratitude to our departing colleagues for their dedication to our
mission and their tremendous contributions that have helped us
pioneer this new modality and bring hope to many patients and
families in need.” The Company will provide further updates on the
strategy for each of its product candidates and its cash runway in
the future.
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 has 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 and has received Breakthrough Therapy and Fast
Track designations from the U.S. Food and Drug Administration.
Finch’s pipeline also includes FIN-211 for children with autism
spectrum disorder and significant gastrointestinal symptoms,
FIN-524 for the treatment of ulcerative colitis, and FIN-525 for
the treatment of Crohn’s disease. Finch routinely posts information
that may be important to its investors on its website at
www.finchtherapeutics.com. Finch encourages investors to consult
the “Investors & News” section of its website regularly.
Human-First Discovery® is a registered trademark of Finch
Therapeutics Group, Inc.
Forward-Looking Statements This press release
includes “forward-looking statements.” Words such as “will,”
"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 financial and strategic impact of the
termination of Finch’s collaboration with Takeda; the potential for
opportunities to leverage third-party clinical data to inform
Finch’s autism program; Finch’s strategic review and plans with
respect to its business and portfolio, including the initiation of
future clinical trials; Finch’s anticipated runway; and Finch’s
ability to develop a novel class of orally administered biological
drugs. 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, those related to:
Finch’s limited operating history and historical losses; Finch’s
ability to raise additional funding to complete the development and
any commercialization of its product candidates and the potential
impact of termination of Finch's collaboration with Takeda on such
funding requirements and Finch's ability to obtain funding; Finch’s
dependence on the success of its lead product candidate, CP101; the
possibility that Finch may be delayed in initiating, enrolling or
completing any clinical trials; results of clinical trials may not
be indicative of final or future results from later stage or larger
clinical trials (or in broader patient populations once the product
is approved for use by regulatory agencies) or may not be favorable
or may not support further development; Finch’s product candidates
may not generate the benefits to patients that are anticipated;
results of clinical trials may not be sufficient to satisfy
regulatory authorities to approve Finch’s product candidates in
their targeted or other indications (or such authorities may
request additional trials or additional information); Finch’s
ability to comply with regulatory requirements; ongoing regulatory
obligations and continued regulatory review may result in
significant additional expense to Finch and Finch may be subject to
penalties for failure to comply; competition from third parties
that are developing products for similar uses; Finch’s ability to
maintain patent and other intellectual property protection and the
possibility that Finch’s intellectual property rights may be
infringed, invalid or unenforceable or will be threatened by third
parties; Finch’s ability to qualify and scale its manufacturing
capabilities in anticipation of commencement of multiple global
clinical trials; Finch’s lack of experience in selling, marketing
and distributing its product candidates; Finch’s dependence on
third parties in connection with manufacturing, clinical trials and
preclinical studies; and risks relating to the impact and duration
of the COVID-19 pandemic on Finch’s business. 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
supplemented by Finch’s Quarterly Reports on Form 10-Q filed with
the SEC on May 16, 2022 and August 11, 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 Current Report 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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