Eli Lilly ends collaboration with Foghorn Therapeutics, prompting layoffs and pipeline shift
Eli Lilly terminated its 2021 partnership with Foghorn Therapeutics, halting development of the FHD‑909 program and a selective SMARCA2 degrader. Foghorn announced an approximately 40% workforce reduction and will refocus on its wholly‑owned pre‑clinical pipeline, including an EP300 degrader. The company reported $167.6 million in cash as of June 30 2026 and expects its cash runway to extend into the second half of 2029. Analysts at TD Cowen and others downgraded the stock following the news.
Why it matters
The termination removes a major partner and funding source, increasing execution risk for Foghorn’s pipeline and pressuring its share price, as noted by TD Cowen’s downgrade. The extended cash runway gives the company time to develop its own programs, but investors must weigh the loss of Lilly’s support against the longer‑term financing outlook.
Key facts
- 1Eli Lilly ended the collaboration with Foghorn Therapeutics, stopping development of FHD‑909 and a selective SMARCA2 degrader. aol.com
- 2Foghorn plans to prioritize its wholly‑owned pipeline, including a selective EP300 degrader and other pre‑clinical programs. aol.com
- 3The company expects an approximately 40% reduction in its workforce. aol.com
- 4Foghorn reported $167.6 million in cash as of June 30 2026. aol.com
- 5The cash runway is projected to extend into the second half of 2029. aol.com
- 6TD Cowen downgraded Foghorn Therapeutics’ stock after the partnership termination. seekingalpha.com
Open questions
- Material 1 reports a 50% pre‑market decline while material 2 reports a 27.17% decline.
Summary written by AlphAI from 4 of 4 sources. Not investment advice. Figures are as stated by the linked sources.