Job Cuts at Federation Bio Following First Clinical Trial

Federation Bio has laid off an unidentified number of employees less than sixth months after beginning their first trial.

The company was founded back in 2019 by Michael Fischbach and Dylan Dodd, generating $50 million in their first round of raising funds. It had the support of a few capital finance entities including Venrok, Altitude, and Horizon Ventures.

The possibility of using the microbiome as an environment in which to develop possible treatments seemed alluring, but there has been no announcement of Federation Bio acquiring any capital investment since they started up.

Federation’s initial standpoint was to improve patient response to immunotherapy by developing new microbiome therapeutics, prompting a partnership with MD Anderson.

Back at the start of the year, they announced they were collaborating on a “complex consortium of bacteria” in a bid to increase the proportion of individuals who respond well to treatment.

Success rates across microbiome firms recently have been inconsistent. Several have achieved positive outcomes, like Seres Therapeutics and Nestle Health Science, whose oral microbiome Clostridioides difficile treatment was the first of its kind to be licenced by the FDA.

However, some businesses have experienced ongoing disappointments, such as Evelo, which discarded their atopic dermatitis candidate following unfavourable trial results. A second Flagship owned company, Kaleido, closed all operations in 2022.

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