Finch Therapeutics to Cut 20% of Staff in Restructuring

By Colin Kellaher

Finch Therapeutics Group Inc. on Tuesday said it plans to cut a fifth of its work force as the clinical-stage microbiome therapeutics company narrows its focus on key development programs.

The Somerville, Mass., company said the move follows the U.S. Food and Drug Administration's recent clinical hold on studies of CP-101, its lead product candidate, and its decision to pause its chronic hepatitis B program.

Finch said it expects cut 37 full-time employees, or about 20% of its staff, resulting in restructuring costs of about $1.1 million.

Finch said it plans to focus its financial resources on its development programs in recurrent C. difficile infection and autism spectrum disorder, as well as its partnership with Takeda Pharmaceutical Co. on inflammatory bowel disease.

Finch said it recently submitted a complete response to the FDA regarding the clinical hold, which is related to the company's SARS-CoV-2 donor screening protocols and associated informed consent language, and that it is awaiting feedback.

Finch said it plans to provide updated guidance on the expected extension of its cash runway as a result of the restructuring when it reports its first-quarter results.

Write to Colin Kellaher at [e-mail]

(END) Dow Jones Newswires

04-19-22 0912ET