Finch Therapeutics (NASDAQ:FNCH) is discontinuing a phase 3 trial of its bacterial infection drug CP101 and reducing its workforce by ~95%.
The company noted that it will discontinue the late-stage study, dubbed PRISM4, of microbiome candidate CP101 in recurrent C. difficile infection (CDI) and focus on realizing the value of its intellectual property estate and other assets.
C. difficile is a bacterium which causes diarrhea and colitis (an inflammation of the colon).
Finch said the decision follows an assessment by 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 expected enrollment in the trial, harmful impact of ongoing unauthorized use of the company’s intellectual property, and broader sector trends.
As a result of this, Finch is cutting its workforce by ~95% and the majority of impacted roles will end in February 2023. 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 added.
Finch noted that it has a portfolio of microbiome assets including CP101, an investigational oral microbiome candidate with positive data from a phase 2 trial, and a phase 2 study in recurrent CDI.
“These were very difficult decisions that we determined were necessary after carefully considering a number of factors and challenges facing Finch,” said CEO Mark Smith.
FNCH +20.61% to $0.61 premarket Jan. 24