SOMERVILLE, Mass., March 23, 2023 (GLOBE NEWSWIRE) -- Finch Therapeutics Group, Inc. (“Finch”, “Finch Therapeutics” or the “Company”) (Nasdaq: FNCH), a microbiome technology company with a portfolio of intellectual property and microbiome assets, today reported fourth quarter and full year 2022 financial results and provided business updates.
“We believe that Finch has made significant progress towards restructuring the business to maximize value for shareholders through our robust intellectual property estate, including by continuing to support the advancement of our microbiome technology through partnerships and collaborations,” said Mark Smith, PhD, Chief Executive Officer of Finch Therapeutics. “As part of our restructuring, we have significantly decreased costs by reducing vendor and employee expenses, extending our expected cash runway into 2025. We expect this will support company operations well beyond our anticipated jury trial with Ferring and Rebiotix, which is scheduled for May 2024, over what we believe is their ongoing unauthorized use of our intellectual property. In addition to these recent developments, we continue to pursue partnerships with leading research institutions to explore new opportunities for our microbiome technology to address a variety of important unmet clinical needs.”
Recent Corporate Updates
Financial Results
About Finch Therapeutics
Finch Therapeutics is a microbiome technology company with a portfolio of intellectual property and microbiome assets. 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. Finch’s assets include CP101, an investigational, orally administered microbiome candidate with positive clinical date 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, along with a significant biorepository of samples and microbial strains. In January 2023, Finch announced a decision to discontinue its Phase 3 trial of CP101 in recurrent CDI. Following this decision, Finch is focused on realizing the value of its intellectual property estate and other assets, while supporting the advancement of its microbiome technology through partnerships and collaborations.
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 progress towards restructuring its business to maximize value for shareholders; Finch’s anticipated cash runway and its potential to support company operations; Finch’s efforts to pursue partnerships with leading research institutions to explore opportunities for its microbiome technology;; Finch’s ability to realize the value of its intellectual property estate and other assets; the likelihood of Finch’s success in its ongoing patent litigation, including with respect to the implications of the court’s decision in its recent claim construction hearing and determination; the potential for Finch’s microbiome technology to address a variety of important unmet clinical needs; the potential applications of and timelines applicable to investigator-sponsored clinical trials involving MCT-101 being conducted by UMN, and the ability of Finch to benefit therefrom; and opportunities for Finch to license its biorepository of proprietary strains and samples. 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; 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
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Media and Collaborator Contact:
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Finch Therapeutics Group, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share data)
FOR THE THREE MONTHS ENDED DECEMBER 31, | FOR THE YEAR ENDED DECEMBER 31, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Revenue: | ||||||||||||||||
Collaboration revenue | $ | 8 | $ | 806 | $ | 861 | $ | 18,532 | ||||||||
Total revenue | 8 | 806 | 861 | 18,532 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 16,581 | 14,803 | 57,893 | 57,279 | ||||||||||||
General and administrative | 10,936 | 5,065 | 38,088 | 21,238 | ||||||||||||
Impairment of goodwill | — | — | 18,057 | — | ||||||||||||
Restructuring expense | 243 | — | 2,416 | — | ||||||||||||
Total operating expenses | 27,760 | 19,868 | 116,454 | 78,517 | ||||||||||||
Loss from operations | (27,752 | ) | (19,062 | ) | (115,593 | ) | (59,985 | ) | ||||||||
Other income | 744 | 7 | 947 | 1,825 | ||||||||||||
Net loss | $ | (27,008 | ) | $ | (19,055 | ) | $ | (114,646 | ) | $ | (58,160 | ) | ||||
Net loss per share attributable to common stockholders—basic and diluted | $ | (0.56 | ) | $ | (0.40 | ) | $ | (2.40 | ) | $ | (1.48 | ) | ||||
Weighted-average common stock outstanding—basic and diluted | 47,928,312 | 47,491,731 | 47,691,632 | 39,202,086 |
Finch Therapeutics Group, Inc.
Condensed Consolidated Balance Sheet Data
(in thousands)
DECEMBER 31, 2022 | DECEMBER 31, 2021 | |||||||
Assets: | ||||||||
Cash and cash equivalents | $ | 71,038 | $ | 133,481 | ||||
Other assets | 91,901 | 91,888 | ||||||
Total assets | $ | 162,939 | $ | 225,369 | ||||
Liabilities, redeemable convertible preferred stock and stockholders' equity | ||||||||
Liabilities | 67,228 | 23,145 | ||||||
Stockholders' equity | 95,711 | 202,224 | ||||||
Total liabilities and stockholders' equity | $ | 162,939 | $ | 225,369 |
Last Trade: | US$12.00 |
Daily Change: | 10.20 566.67 |
Daily Volume: | 1,048 |
Market Cap: | US$19.320M |
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