Finch Therapeutics Announces Decision to Discontinue Phase 3 Trial of CP101 and Focus on Realizing the Value of Its Intellectual Property Estate and Other Assets
January 24 2023 - 8:00AM
Finch Therapeutics Group, Inc. (the “Company,” “Finch,” or “Finch
Therapeutics”) (Nasdaq: FNCH) today announced its decision to
discontinue the PRISM4 Phase 3 trial of CP101 in recurrent C.
difficile infection (CDI) and focus on realizing the value of its
intellectual property estate and other assets. This decision
follows an assessment by Finch’s management team and board of
directors of several factors, including the Company’s outlook for
securing additional capital or partnerships to help fund the CP101
program through important milestones, slower than anticipated
enrollment in the PRISM4 trial, the harmful impact of ongoing
unauthorized use of the Company’s intellectual property, and
broader sector trends. As a result of this decision, Finch is
reducing its workforce by approximately 95%. The majority of
impacted roles will end in February 2023, while some roles are
expected to be maintained into May 2023 to support the Company’s
new focus and continued evaluation of opportunities to create value
for shareholders.
Finch has a portfolio of microbiome assets
including CP101, an investigational orally administered microbiome
candidate with positive data from a Phase 2 placebo-controlled
trial and a Phase 2 open-label trial in recurrent CDI.
Additionally, Finch has pre-clinical microbiome assets that are
designed to target ulcerative colitis, Crohn’s disease, and autism
spectrum disorder. Finch has a robust intellectual property estate
reflecting the Company’s pioneering role in the microbiome
therapeutics field, including more than 70 issued U.S. and foreign
patents with critical relevance for both donor-derived and
donor-independent microbiome therapeutics in a range of potential
indications.
“These were very difficult decisions that we
determined were necessary after carefully considering a number of
factors and challenges facing Finch,” said Mark Smith, PhD, Chief
Executive Officer of Finch Therapeutics. “I would like to extend my
deepest gratitude to all the Finch team members who dedicated their
passion and talent to pursuing our mission of harnessing the
microbiome to serve patients in need. I would also like to
sincerely thank the patients, study investigators, and study staff
who participated in our trials and helped advance this important
research in a promising new field of medicine.”
About Finch Therapeutics Finch
Therapeutics has a portfolio of microbiome assets including CP101,
a late-stage, investigational, orally administered microbiome
candidate with positive clinical data from a Phase 2 randomized,
placebo-controlled trial and a Phase 2 open-label trial in
recurrent C. difficile infection (CDI). Additionally, Finch has
pre-clinical assets that are designed to target ulcerative colitis,
Crohn’s disease, and autism spectrum disorder. Finch has a robust
intellectual property estate reflecting the Company’s pioneering
role in the microbiome therapeutics field, including more than 70
issued U.S. and foreign patents with critical relevance for both
donor-derived and donor-independent microbiome therapeutics in a
range of potential indications. In January 2023, Finch announced a
decision to discontinue its Phase 3 trial of CP101 in recurrent CDI
and focus on realizing the value of its intellectual property
estate and other assets.
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: Finch’s focus on realizing the value of its
intellectual property estate and other assets; Finch’s plans to
discontinue its Phase 3 trial of CP101 in recurrent CDI; the
timeline and execution of Finch’s plans to reduce its workforce;
Finch’s evaluation of opportunities to create value for
shareholders; and the therapeutic potential of Finch’s product
candidates. 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:
the possibility that Finch will not be able to realize the value of
its intellectual property estate and other assets or that no
strategic alternatives will be available to Finch on attractive
terms and that Finch’s stockholders will not realize any value in
the Company’s shares; Finch’s product candidates may not generate
the benefits to patients that are anticipated; Finch’s ability to
comply with regulatory requirements; and 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. 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, August 11,
2022 and November 10, 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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