Finch Therapeutics Group, Inc. (FNCH): Business Model Canvas [Dec-2025 Updated]

You're looking at Finch Therapeutics Group, Inc. (FNCH), and to be frank, the business model has completely flipped from a clinical pipeline to a pure-play intellectual property (IP) monetization shell. Forget R&D milestones; this structure is built around aggressive patent enforcement, evidenced by the recent $30 million jury award and the need to manage over 70 issued patents. What this means for you is understanding a high-stakes game where the primary 'customer' segments are patent infringers and speculative micro-cap investors, all while the company navigates a net cash position of approximately -$12.95 million as of November 2025. Dive in below to see the precise mechanics of how this skeleton crew plans to extract value from the Federal Court System and their pioneering microbiome IP.

Finch Therapeutics Group, Inc. (FNCH) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Finch Therapeutics Group, Inc. relies on to drive value from its intellectual property estate, especially after pivoting its focus away from its own Phase 3 trial execution.

University of Minnesota

Finch Therapeutics Group, Inc. maintains an Amended and Restated Exclusive License Agreement with the Regents of the University of Minnesota for foundational intellectual property.

• The license covers exclusively licensed 13 issued patents and 7 patent applications.
• The licensed IP covers specific approaches to formulations comprising human fecal microbes, methods of increasing microbiota diversity, and methods of decreasing the relative abundance of certain bacteria.
• The agreement structure allows Finch Therapeutics Group, Inc. to satisfy certain performance milestones through sublicensing arrangements.

Legal Counsel

Ongoing patent litigation is a critical component of the current strategy to realize IP value, with significant financial stakes tied to the outcomes.

Brigham and Women's Hospital

Finch Therapeutics Group, Inc. has a clinical trial agreement for investigator-sponsored work on its lead candidate, CP101.

• The trial evaluates CP101 in patients with mild-to-moderate ulcerative colitis.
• The study is designed to compare two doses of CP101.
• Topline data from this investigator-sponsored study was anticipated in 2025.

Potential Licensees

The business model relies on external parties for commercializing IP assets, as evidenced by existing agreements and strategic focus.

The amendment to the University of Minnesota license explicitly allows Finch Therapeutics Group, Inc. to meet performance milestones through sublicensing arrangements.

Financial terms from a separate agreement with Skysong Innovations LLC provide a framework for potential future sublicensing deals:

• Upfront fee paid: $10,000.
• Milestone payment upon first commercial sale in each of seven countries (US, England, France, Germany, Italy, Spain, Japan): low-six digits per country.
• Commercial milestone payment upon cumulative worldwide net sales reaching the low-nine digits: low-seven digits.
• Royalty on net sales: low-single digit percentage.
• Minimum annual royalty payment: mid-four digits to low-five digits.
• Percentage of any non-royalty consideration from a sublicensee: high-second decile.

The company announced a delisting from Nasdaq in October 2024, reinforcing the focus on IP monetization over maintaining a public listing structure.

Finch Therapeutics Group, Inc. (FNCH) - Canvas Business Model: Key Activities

You're looking at the core actions Finch Therapeutics Group, Inc. is taking now that the company has largely pivoted away from product development. The focus is razor-thin, centered almost entirely on monetizing the intellectual property (IP) through legal means and eventual asset realization.

Patent Enforcement and Litigation Against Infringers like Ferring Pharmaceuticals

The primary activity is the enforcement of the IP estate, specifically against Ferring Pharmaceuticals regarding the Rebyota product. This activity is driven by a significant legal victory.

• Jury awarded an upfront payment of $25 million plus a royalty of $815,061 (Source 7).
• Total award including pre-trial interest was approximately $30 million (Source 1).
• The jury found willful infringement, allowing for enhanced damages up to three times the award (Source 1).
• Potential enhanced damages with interest could add $30 million to $60 million to the award (Source 1).
• Potential attorney's fees in excess of $20 million may be granted after appeals are exhausted (Source 1).
• The litigation concerns infringement of US Patent Nos. 10,675,309, 11,541,080, and 10,251,914 (Source 7).

The outcome of the judge's post-trial decision is the immediate financial catalyst. If the judge grants enhanced damages, the total recovery could be substantially higher than the initial jury finding.

Managing and Maintaining the Extensive Intellectual Property (IP) Portfolio

Maintaining the legal standing of the IP portfolio is crucial, as this is the company's core asset. This involves managing the licenses and defending the patents.

The company's objective is to realize value from this estate through licensing to collaboration partners (Source 17). This requires ongoing, albeit minimal, legal and administrative oversight to keep the patents active.

Minimal General and Administrative (G&A) Functions to Sustain Corporate Existence

Since discontinuing the Phase 3 trial and laying off 95% of its workforce in early 2023 (Source 11), the G&A function is strictly focused on corporate survival and managing the litigation. The company is now quoted on the Pink Limited Market, indicating limited issuer involvement (Source 13).

Here's a look at the historical operating cost structure, which informs the current minimal burn rate:

• Total Operating Expenses for FY 2023: $84.6 million (Source 8).
• Net Income Loss for FY 2023: -$74.8 million (Source 8).
• Net Cash Position (as of early 2025 estimate): Approximately $10 million (Source 1).
• Market Capitalization (as of November 2025): $21.92 million (Source 8).

The current activity level is defintely low, with the company essentially functioning as a shell focused on legal outcomes.

Exploring Strategic Transactions for Remaining Assets and IP

The overarching activity is maximizing shareholder value from the remaining assets, which management indicated in early 2023 included prepping for a sale, merger, or liquidation (Source 11). The litigation is the primary mechanism to establish a floor value for the IP.

The company's stated objectives include realizing value through licensing its technology to collaboration partners (Source 17). This implies active engagement in discussions for strategic transactions, even while the Ferring litigation is ongoing. Finance: draft 13-week cash view by Friday.

Finch Therapeutics Group, Inc. (FNCH) - Canvas Business Model: Key Resources

You're looking at the core assets Finch Therapeutics Group, Inc. (FNCH) is leaning on right now, heading into late 2025. It's a lean operation, frankly, with the value proposition resting almost entirely on intellectual property and the recent legal win.

Intellectual Property Estate

The primary, non-fungible asset here is the intellectual property (IP) portfolio. This is what the company is, for all intents and purposes, now focused on monetizing, given the shift away from product development. You need to see this as the main driver of any remaining enterprise value.

Finch Therapeutics Group, Inc. maintains a significant IP Estate:

• Robust IP Estate: Over 70 issued U.S. and foreign patents in microbiome therapeutics.
• This portfolio reflects their pioneering work in the field, covering both donor-derived and donor-independent approaches.

Financial Position and Liquidity

The cash situation tells a clear story about runway and operational burn. As of late 2025, the balance sheet shows a deficit in net cash, meaning liabilities exceed readily available cash, which is typical for a company in this stage of strategic pivot.

Here's the quick math on the balance sheet as of the latest available reporting near November 2025:

That Net Cash position of approximately -$12.95 million as of November 2025 is critical; it means the company is operating on a net-negative cash basis, relying on other assets or future monetization events to cover obligations. Also, note the market capitalization, which was reported around $21.69M as of November 28, 2025.

Litigation Value Realization

The jury award provides a significant, albeit contingent, cash inflow resource. This is the immediate, tangible financial upside derived from their IP defense strategy. You'll want to track the judge's post-trial decision closely, as that will finalize the true value of this resource.

The key litigation outcome is:

• Litigation Awards: Jury award of approximately $30 million from patent infringement case against Ferring Pharmaceuticals, which included pre-trial interest.

This award, which was found against Ferring for willful infringement, is a direct, non-dilutive source of potential capital, so it's a major resource supporting the current structure.

Human Capital Structure

The operational structure reflects the shift to an IP-centric model. You won't find a large R&D or commercial team here; the focus is highly specialized, which keeps overhead low but limits operational flexibility.

The human resource component is characterized by:

• Skeleton Crew: Minimal executive and advisory team focused on IP strategy.

This lean staffing model helps conserve the existing cash position while maximizing focus on the core activity: defending and licensing the patent portfolio. If onboarding takes 14+ days, churn risk rises, though that's less of a concern with such a small team.

Finch Therapeutics Group, Inc. (FNCH) - Canvas Business Model: Value Propositions

You're looking at Finch Therapeutics Group, Inc. (FNCH) as a pure asset play now, given the strategic pivot. The value proposition centers heavily on the intellectual property (IP) and the lean structure left after the major restructuring.

High-Value IP: Pioneering, broad patent protection for microbiome product strategies

The core value rests on the breadth of the IP portfolio, which includes over 50 patents and thousands of stool samples and bacterial isolates. This IP is the basis for the litigation success against Ferring Pharmaceuticals Inc. for their REBYOTA® product.

• Asserted claims: 5 claims on 3 patents in the Ferring litigation.
• Infringement found on 3 patent claims across 3 US patents.
• The company is leveraging its Human-First Discovery® platform.

Litigation Upside: Potential for significant enhanced damages and future royalties

The August 2024 jury verdict provided a concrete financial validation of the IP. The award was $25 million in damages and future royalties. Before this, the damages expert had presented testimony supporting an award of essentially a $50 million license fee based on a comparable Nestle-Seres license, plus a 30% running royalty on all past and future Rebyota sales. This win emboldens their licensing strategy moving into late 2025.

Clean Corporate Structure: Minimal debt and operating costs for a potential acquirer

Following the discontinuation of the PRISM4 Phase 3 trial, the company laid off 95% of its workforce. The structure is now described as 'basically just a cash-and-IP shell' with only one employee. Financially, as of March 31, 2024, Finch Therapeutics Group, Inc. had $20.8 million in Cash on Hand. The trailing twelve months EBITDA was reported as -19,506,000. As of May 3, 2024, the shares outstanding were 1,605,763.

Here's the quick math on the cash position as of early 2024, which underpins the current structure:

Pre-clinical Assets: FIN-211, FIN-524, FIN-525 for ASD, UC, and Crohn's disease

Finch Therapeutics Group, Inc. regained worldwide rights for these assets from Takeda Pharmaceutical Company Limited, effective November 17, 2022. Takeda's prior investment in these programs exceeded $44 million, including a $10 million upfront payment.

The pipeline assets represent optionality beyond the litigation:

These IBD candidates (FIN-524 and FIN-525) are composed of bacterial strains selected for their potential immuno-modulatory properties.

Finch Therapeutics Group, Inc. (FNCH) - Canvas Business Model: Customer Relationships

Transactional relationships for Finch Therapeutics Group, Inc. center on realizing value from its intellectual property estate, primarily through pharma licensing and litigation outcomes.

Direct engagement with patent infringers is the primary mechanism for transactional value realization, as evidenced by the ongoing legal action against Ferring Pharmaceuticals.

Legal/Adversarial: Direct engagement with patent infringers via litigation.

The jury found that Ferring had willfully infringed the patents, opening the door for enhanced damages.

The Federal Circuit affirmation rates position Finch Therapeutics Group, Inc. well for appeals, with potential for additional attorney's fees and post-trial interest.

The final post-trial briefs were submitted in November, and the case was stayed on appeal as of the July 8 ruling.

Investor Relations: Minimal communication, primarily through OTC filings and legal updates.

Finch Therapeutics Group, Inc. announced its delisting from the Nasdaq Global Select Market and SEC deregistration on October 21, 2024, shifting communication primarily to OTC Markets (OTCPK:FNCH).

The company profile data was verified by the issuer within the previous 6 months, as of September 2025.

Finch Therapeutics Group, Inc. has between 11 and 50 Employees.

Key financial and market data points as of late 2025:

• Market Cap as of November 28, 2025: $21.69M.
• Share Price as of December 04, 2025: $13.62.
• 52-Week Stock Price Range: Low of $10.15 to High of $16.10.
• Enterprise Value as of December 31, 2024: $35.67M.
• Cash and Equivalents as of December 31, 2024: $10.26M.
• Total Debt as of December 31, 2024: $27.79M.
• Insider selling over the last year across 100 transactions totaled $42.5K.
• High-impact insider transactions showed purchases of $3.05M and sales of $76.9K.

Board changes included resignations in August and September 2025.

Finch Therapeutics Group, Inc. (FNCH) - Canvas Business Model: Channels

You're looking at how Finch Therapeutics Group, Inc. (FNCH) monetizes its assets now that its primary product development efforts have been scaled back. The channels are heavily weighted toward legal enforcement and public market visibility, rather than product sales, which is a key strategic pivot since January 2023.

Federal Court System: Primary channel for realizing IP value through litigation

The Federal Court System is the main venue for Finch Therapeutics Group, Inc. to realize value from its intellectual property estate, which, as of early 2024 filings, included more than 113 issued U.S. and foreign patents.

The most significant channel activity involved the patent infringement case against Ferring Pharmaceuticals. A jury trial in August 2024 found that Ferring willfully infringed three of Finch Therapeutics Group, Inc.'s patents related to fecal biotherapeutics.

The initial jury award was substantial, citing a one-time licensing fee and pre-trial interest totaling approximately $30 million, with future royalties yet to be determined by the judge.

This finding of willful infringement creates a channel for enhanced recovery, as awards can be multiplied up to three times the jury award, with an average historical factor of 2.2x in similar patent cases.

The path forward in this channel depends on the judge's post-trial decision, which was anticipated following final briefs submitted in November 2024.

The company's strategic focus on litigation was supported by an amendment to its University of Minnesota license agreement in April 2023, which explicitly allows performance milestones to be met through continued litigation.

Direct Business Development: Outbound efforts to sub-license the IP estate

Direct Business Development focuses on out-licensing the IP portfolio, a necessary step given the termination of the Takeda Agreement in November 2022.

The structure of these potential deals is governed by existing agreements, such as the University of Minnesota license, which mandates that Finch Therapeutics Group, Inc. must pay a percentage of any non-royalty consideration received from a sublicensee in the high-second decile (i.e., 10% to 19.99%).

The company's ability to secure new, significant sub-licensing deals remains a key area of focus for value realization, though reports suggest no 'big licensing deals' have been struck since the strategic shift.

Key elements Finch Therapeutics Group, Inc. uses to attract partners include:

• The robust IP estate of more than 113 patents.
• The potential for enhanced damage awards from litigation.
• The clinical data from CP101 trials, with topline data for ulcerative colitis expected in 2025 from an investigator-sponsored trial.

OTC Markets (OTCPK): Public trading venue for FNCH stock after Nasdaq delisting

The OTC Markets serve as the public trading channel following the announcement of delisting from Nasdaq on October 21, 2024. Finch Therapeutics Group, Inc. currently trades on the Pink Limited Market.

The market capitalization as of November 30, 2025, stood at $21.69M.

Trading activity on December 4, 2025, showed a closing price of $13.79, with a daily trading range between a low of $13.30 and a high of $14.75.

The stock's 52-week range as of early December 2025 was between a low of $10.15 and a high of $16.10.

Liquidity metrics for this channel include:

The company's next expected earnings release was scheduled for December 12, 2025.

Finch Therapeutics Group, Inc. (FNCH) - Canvas Business Model: Customer Segments

You're looking at the customer segments for Finch Therapeutics Group, Inc. (FNCH) as of late 2025. Given the company's shift in focus, the segments are less about product sales and more about intellectual property monetization and legal outcomes. Honestly, the financial data paints a picture of a company whose primary recent financial event involved a legal counterparty, not traditional sales.

Pharmaceutical/Biotech Companies: Seeking to license or acquire microbiome IP

Finch Therapeutics Group, Inc.'s stated objective is to realize the value of its intellectual property estate through licensing its technology to collaboration partners. Historically, this segment generated revenue, with a peak annual revenue of $18.532 million in the fiscal year ending 2021-12-31. However, for the latest twelve months ending December 4, 2025, Finch Therapeutics did not report meaningful revenue. The company holds a robust intellectual property estate, including more than 70 issued U.S. and foreign patents. Past collaboration and license agreements involved entities such as Takeda Pharmaceutical Company Limited and the University of Minnesota.

• Historical peak annual revenue (2021): $18.532 million.
• 2023 annual revenue: $107 thousand.
• Current focus: Realizing value through licensing and enforcement.
• IP portfolio: Over 70 issued U.S. and foreign patents.

Patent Infringers: Companies like Ferring Pharmaceuticals subject to litigation

This segment represents a direct, high-stakes financial interaction based on patent enforcement. Finch Therapeutics prevailed in a patent infringement trial against Ferring Pharmaceuticals Inc. regarding fecal transplant technology. The jury found that Ferring willfully infringed on patents held by Finch and the University of Minnesota. The financial award from this segment is the most concrete recent data point.

Here's the quick math on the litigation outcome as of late 2024/early 2025:

Ferring stated it would reduce commercialization efforts for Rebyota in the United States following the ruling. The company laid off as many as 500 employees, representing a little more than 8% of its worldwide workforce of about 6,000 employees, with cuts in the U.S. gastroenterology franchise.

Micro-Cap Investors: Speculative investors focused on the binary outcome of litigation

Following the discontinuation of its Phase 3 trial for CP101 in January 2023, Finch Therapeutics focused on realizing IP value, leading to a significant reduction in its public market valuation, making it a target for speculative micro-cap investors. The market capitalization around the August 2024 trial was reported as just $2-3 million. By the end of 2023, the market cap was approximately $5.8 million, down from $473.7 million in 2021. As of November 2025, the company trades on the OTC Pink Limited Market.

• Market Cap (End of 2023): $5.8 million.
• Market Cap (August 2024): $2-3 million.
• Market Cap (February 2025): Less than $20 million.
• Trading Venue (as of Nov 2025): OTC Pink Limited Market.

The company announced its plan to delist from the Nasdaq Global Select Market around October 31, 2024. The company's transfer agent verified outstanding shares directly to OTC Markets as of September 2025.

Finch Therapeutics Group, Inc. (FNCH) - Canvas Business Model: Cost Structure

You're looking at the cost structure of Finch Therapeutics Group, Inc. as it exists in a highly focused, post-operational state as of late 2025. The costs are now almost entirely driven by legal defense and minimal overhead required to maintain the intellectual property estate, so you won't see the large R&D or SG&A burns of a clinical-stage company.

Legal Fees: Dominant cost for patent litigation and IP defense. The primary expenditure is now centered on enforcing its patent rights, following the strategic pivot away from product development. The company won a jury trial against Ferring Pharmaceuticals, which resulted in an initial award plus pre-trial interest totaling approximately $30 million. What this estimate hides is the future cost: the judge's post-trial decision on future royalties is pending, and there's a possibility of enhanced damages that could double or triple that initial award. Furthermore, attorney's fees could be granted, an amount potentially in excess of $20 million, though this won't be determined until all appeals are exhausted, a process that could take years. This litigation focus is the single largest cost driver.

Minimal G&A: Drastically reduced operating expenses following 95% staff layoffs. The company executed severe restructuring, including laying off 95% of its staff back in January 2023. This action was designed to stretch the cash runway into 2025. The operational cost base is now razor-thin; as of early 2024, the headcount had been reduced to just one full-time employee. This lean structure is reflected in the operating results, with the Operating Income (PBDIT) for the period ending December 2024 reported at -$18.86 Million, a figure significantly lower than prior years due to the drastic cost cuts. Still, the company is burning cash to sustain the legal fight, with operating cash flow for the last 12 months recorded at -$18.06 million.

Compliance Costs: Reduced by delisting from Nasdaq and deregistering from the SEC. To further reduce expenses, Finch Therapeutics Group, Inc. initiated a move to minimize regulatory burdens. In late 2024, the company provided notification of its intent to delist from the Nasdaq Global Select Market and subsequently deregister its common stock under the Securities Exchange Act. This move was specifically aimed at limiting the significant costs associated with preparing and filing periodic reports with the SEC and the demands of Sarbanes-Oxley Act compliance. The expectation was that upon filing Form 15, the duty to file all periodic reports would be immediately suspended.

Lease Obligations: Residual costs from former headquarters, largely subleased away. The major fixed overhead from the physical footprint has been largely eliminated. You can see the successful reduction in the prior lease expense; the Inner Belt Road Lease, for example, terminated, and rent obligations ended on June 30, 2023. The lease expense under that specific agreement was $0.6 million for each of the six-month periods ending June 30, 2023, and June 30, 2022. Any remaining lease obligations as of late 2025 are expected to be minimal or fully covered by subleasing arrangements, reflecting a near-zero footprint cost.

Here's a quick look at the key cost-related metrics we're tracking:

• Litigation is the primary expense focus.
• Operating burn is sustained by remaining cash reserves.
• Regulatory compliance costs are actively being minimized.
• Fixed facility costs are largely historical.

Finance: draft 13-week cash view by Friday.

Finch Therapeutics Group, Inc. (FNCH) - Canvas Business Model: Revenue Streams

You're looking at the core of Finch Therapeutics Group, Inc.'s (FNCH) current financial structure, which is heavily concentrated on the outcome of its intellectual property enforcement, especially following the August 2024 jury verdict against Ferring Pharmaceuticals Inc. This is where the real potential value lies for the company, which has pivoted to realizing value from its patent estate. The revenue streams are almost entirely contingent on judicial decisions and future commercial success of the infringing product.

Litigation Proceeds and Future Royalties

The primary near-term revenue driver stems from the patent infringement case. The jury found that Ferring's Rebyota infringed three of Finch Therapeutics Group, Inc.'s and the University of Minnesota's patents, and that the infringement was willful. This finding is critical because it unlocks the potential for enhanced damages.

Here is a breakdown of the initial jury award components, which Finch Therapeutics Group, Inc. shared with the University of Minnesota:

The judge's post-trial decision, which you are waiting on as of late 2025, will finalize the ongoing royalty structure. Honestly, the market is keenly focused on this ruling.

Potential Enhanced Damages

Because the jury determined the infringement was willful, Finch Therapeutics Group, Inc. has a pathway to significantly increase the award. This is a major lever for revenue enhancement.

• Potential to be enhanced up to 3x the jury award.
• One analysis suggested enhanced damages could add between $30 million and $60 million to the award.
• The average multiplication factor seen in similar patent cases with willful infringement is cited as 2.2x.

If the judge grants the maximum enhancement, the total award could climb substantially above the initial jury finding. That's a massive swing for a company with a market capitalization that was reported under $20 million in early 2025.

Existing IP Licensing Fees and Obligations

Even before the Ferring litigation, Finch Therapeutics Group, Inc. had existing revenue streams and obligations tied to its broader intellectual property portfolio, which it is now focusing on realizing value from. These are smaller, recurring, or contingent payments.

You should note the existing contractual commitments that factor into the net cash flow:

• University of Minnesota Agreement: Annual maintenance fee of $5,000.
• University of Minnesota Minimum Royalty: Escalating minimum annual payments in the low-five digits to low-six digits.
• Arizona State University Minimum Royalty: Increased to $20,000 in 2024, with payments continuing.
• OpenBiome Milestones: Up to $6.0 million for regulatory approvals and up to $20.0 million for sales milestones.
• OpenBiome Sublicensing Revenue: A high single digit percentage of certain sublicensing revenue.

Finance: draft 13-week cash view by Friday.