Microbiome drug developer Finch Therapeutics will lay off 95% of its workforce and end an important clinical trial of a medicine it’s developing for a type of bacterial infection.
The jobs cuts, announced by Finch Tuesday, will affect 77 employees. It is the third round of layoffs for the struggling biotechnology company since April 2022, following prior reductions of 20% and 37%. In its statement, Finch attributed the restructuring in part to its chances of obtaining additional funding or partnerships to advance the medicine, known as CP-101 and for recurrent C. difficile infections. The company also cited slower-than-expected enrollment in a Phase 3 study of CP-101, unauthorized use of the company’s patents and “broader sector trends.”
“These were very difficult decisions that we determined were necessary after carefully considering a number of factors and challenges facing Finch,” said Finch CEO Mark Smith in the Jan. 24 statement.