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

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