- Finch Therapeutics Group Inc (NASDAQ:FNCH) announced the layoff of 20% of its staff in a regulatory filing. The cuts will impact 37 full-time employees.
- The FDA in March placed a clinical hold on the Phase 3 trial for CP101, a donor-derived microbiome drug for Clostridioides difficile, as well as a partial hold on its new drug application.
- The FDA had asked for additional information about Finch's SARS-CoV-2 donor screening protocols. Due to the hold, the company paused enrollment in the late-stage trial, dubbed PRISM4.
- Finch also paused its chronic hepatitis B program.
- Finch said the restructuring would allow it to direct financial resources to the C. difficile and autism spectrum disorder programs.
- The changes will mean $1.1 million in costs for Finch due to severance payments and other expenses.
- The company said the restructuring would be substantially completed by the end of Q2.
- Finch provided a brief update on the clinical hold of the PRISM4 Phase 3 trial of CP101 in recurrent C. difficile infection, saying that the company had provided a complete response to the agency and is now awaiting feedback.
- Price Action: FNCH shares are down 0.82% at $3.63 during the market session on the last check Wednesday.
