After Six Years Of Collaboration, Takeda Walks Away From Microbiome Drug Pact

Vandana Singh
1 min read
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In this article:

  • Finch Therapeutics Group Inc (NASDAQ: FNCH) will regain full development and commercial rights to FIN-524 (previously known as TAK-524) and FIN-525 from Takeda Pharmaceutical Company Ltd (NYSE: TAK).

  • Following a review of its pipeline, Takeda will terminate its collaboration with Finch, effective November 17, 2022, resulting in the return to Finch of worldwide rights to develop and commercialize FIN-524, FIN-525, and any other microbiome product candidates for inflammatory bowel disease (IBD).

  • Also Read: Takeda To Lead Finch-Partnered Microbiome IBD Drug.

  • "We are currently conducting a review of our portfolio and assessing the financial and strategic impact of the discontinuation of our collaboration with Takeda," said Mark Smith, CEO of Finch Therapeutics.

  • Finch has received more than $44 million from Takeda during the collaboration, including an upfront payment of $10 million, $4 million in milestone payments, and more than $30 million in reimbursement of R&D expenses.

  • Upon termination, Finch will receive a royalty-free license to all data and intellectual property generated during the collaboration.

  • FIN-524 and FIN-525 are investigational, orally administered targeted microbiome product candidates composed of bacterial strains selected for their potential immuno-modulatory properties.

  • Price Action: FNCH shares closed at $2.64, and TAK stock closed at $14.02 on Thursday.

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