Finch Therapeutics Secures $53 Million Series C Financing to Advance Novel Microbiome Therapies

On August 22, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that Finch Therapeutics, a developer of novel microbiome-based therapies, announced the completion of a $53 million Series C financing round. Four existing investors from its Series B round participated in this round, including Avenir Growth Capital, Morgan Noble, Shumway Capital, and Willett Advisors. Additionally, four new investors joined, namely OCV Partners, Susquehanna International Group (SIG), Symbiosis, and Trans-Pacific Technology Fund.

It is reported that Finch Therapeutics completed a $5.6 million Series A financing round in December 2016. In 2017, Finch Therapeutics merged with Crestovo, another human microbiome research company that was also developing therapies for Clostridioides difficile infection. In March 2018, Finch Therapeutics completed a $36 million Series B financing round.

In July 2018, Finch Therapeutics entered into a collaboration with Takeda Pharmaceutical Company to develop microbial cocktail therapies for the treatment of gastrointestinal ulcers, based on a “patient-centric” philosophy; this project has currently entered clinical trials. In February 2019, Finch Therapeutics announced that its investigational therapy for Clostridioides difficile infection had received Breakthrough Therapy Designation from the U.S. Food and Drug Administration (FDA). CP101 is a therapeutic agent based on gut microbiota for the treatment of severe Clostridioides difficile infection.

Finch Therapeutics, established in 2004 and headquartered in Massachusetts, USA, is a developer of novel microbiome therapies. The company focuses on creating innovative microbiome-based treatments to serve patients with significant unmet medical needs. Co-founded by data scientists, clinicians, and microbiologists from the Massachusetts Institute of Technology (MIT) and OpenBiome, Finch employs innovative machine learning algorithms to reverse-engineer successful clinical microbiome therapies based on high-throughput microbial molecular data. These innovative therapies are grounded in the science of fecal microbiota transplantation. Leveraging this human-first microbiological approach, Finch identifies and develops bacterial strains with clinical benefits and administers these microbial communities to patients.

Finch Therapeutics will use the funds from this financing round to advance the development of its novel microbiome therapies, including CP101, a full-spectrum microbiota (FSM) therapy administered via oral capsules. Currently, CP101 is being evaluated in Finch Therapeutics’ PRISM3 trial for the prevention of recurrent Clostridioides difficile infection (CDI), a pivotal clinical study. According to Finch Therapeutics, the results of the PRISM3 trial could support FDA approval.

The Series C funding will also enable Finch Therapeutics to accelerate the development of its FSM for the treatment of autism spectrum disorder (ASD). ASD is a developmental disorder characterized by behavioral symptoms and is often accompanied by gastrointestinal (GI) syndromes. Studies suggest that both GI and behavioral symptoms may be associated with a disrupted microbiome. Finch Therapeutics is actively conducting the Phase II clinical trial NCT03408886 to evaluate the safety and efficacy of its FSM in treating adults with ASD. The company’s pediatric ASD program has also been granted Fast Track designation by the FDA.

“We are pleased to secure this funding, which, combined with the recent Breakthrough Therapy Designation from the FDA, will enable us to accelerate our R&D efforts and deliver a novel therapeutic option for patients with recurrent Clostridioides difficile infection,” said Mark Smith, CEO of Finch Therapeutics. “We also look forward to advancing the development of treatments for autism spectrum disorder (ASD), inflammatory bowel disease (IBD), and other conditions associated with dysbiosis.”

OCV Partners, founded in 2016 and headquartered in Los Angeles, USA, is a venture capital firm that has raised approximately $261 million to date. The firm focuses on investing in information technology, cloud services, e-commerce, media and telecommunications, life sciences and healthcare, and clean technology.

Susquehanna International Group, established in 1987 and headquartered in Pennsylvania, USA, is one of the world’s largest private financial institutions. With over 1,500 employees worldwide managing trading and marketing operations, SIG maintains offices across North America, Europe, Asia, and Australia.

Headquartered in Washington, U.S., Symbiosis is a community of healthcare providers. This community comprises numerous companies related to the medical industry. Multiple companies can collaborate to treat patients, or they can provide treatment independently.

Trans-Pacific Technology Fund is a technology-driven venture capital fund dedicated to investing in innovative companies. The fund partners with early-stage and growth-stage companies, with investments spanning most of Asia, North America, and Europe.

(Compiled by Cheng Tao)