UPDATE: Jefferies Starts Finch Therapeutics Group Inc. (FNCH) at Buy
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Jefferies analyst Roger Song initiates coverage on Finch Therapeutics Group Inc. (NASDAQ: FNCH) with a Buy rating and a price target of $29.00 on one of the clear leaders in the microbiome space offering 3 key competitive advantages:
1) Their Human-First discovery platform and propriety access to clinical data/CMC agreements with OpenBiome, the largest FMT provider in the US (Finch CEO was co-founder; FMT is the current best CDI Tx and proof of concept for MB-therapies).
2) Unlike many other Co's, Finch uses a broad array of drug dev strategies each of which offers maximal clinical efficacy and commercial viability for a given indication (complete consortia/targeted consortia/enriched consortia)
3) CP101 is a de-risked program for CDI and likely to be one of ~two major players in a ~$4B+ market.
In addition to being the leader in the segment generally, the company has a Lead product, CP101, that is a donor-derived complete consortia product for recurrent Clostridium Difficile Infection (rCDI); a market with a $1B + opportunity. The analyst stated "FMT success and lack of alternative Tx options make CDI is the lowest hanging fruit for oral MB Tx's. Due to safety issues with FMT, oral MB products are set to replace the entire market in the coming years."
Shares of Finch Therapeutics Group Inc. closed at $17.10 yesterday.
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