Finch Therapeutics Ending Phase 3 Study, Cutting Most of Workforce >FNCH

Jan. 24, 2023 at 8:28 a.m. ET

By Colin Kellaher

Finch Therapeutics Group Inc. on Tuesday said it is ending a late-stage study of its lead drug candidate and dismissing most of its staff, as the clinical-stage microbiome therapeutics company plans to focus on realizing the value of its intellectual-property estate and other assets.

The Somerville, Mass., company said it…

By Colin Kellaher

Finch Therapeutics Group Inc. on Tuesday said it is ending a late-stage study of its lead drug candidate and dismissing most of its staff, as the clinical-stage microbiome therapeutics company plans to focus on realizing the value of its intellectual-property estate and other assets.

The Somerville, Mass., company said it is cutting 77 full-time positions, or 95% of its workforce, with the bulk of the jobs ending in February.

Finch said it is also ending a Phase 3 study of CP101 in recurrent C. difficile infection following an assessment of several factors, including its outlook for securing additional capital or partnerships to help fund the CP101 program and slower-than-expected study enrollment.

Finch said it expects to incur about $4.1 million in restructuring charges, mostly in the first half of the year.

Finch last April cut 37 full-time jobs in a narrowing of its focus on key development programs.

Trading in Finch shares, which closed Monday at about 50.2 cents, was halted premarket on Tuesday.

Write to Colin Kellaher at colin.kellaher@wsj.com

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