Foghorn Therapeutics ends Eli Lilly partnership and cuts workforce, shares tumble
Foghorn Therapeutics announced that it and Eli Lilly will discontinue the development of the lead oncology candidate FHD-909 after a Phase 1 trial failed to meet efficacy criteria. The company also terminated a separate SMARCA2 degrader program and plans to reduce its staff by roughly 40%, leaving about 65 employees. The board expects the restructuring to generate about $2.3 million of one‑time charges and to push the cash runway into the second half of 2029, with cash of $167.6 million reported on June 30 2026.
Why it matters
The termination of the Lilly collaboration removed a major source of future revenue and caused the stock to fall sharply, trading down more than 30% on the day of the announcement. The workforce reduction and cash‑runway extension indicate a shift to a wholly proprietary pipeline, which may affect investors' valuation of the company’s near‑term prospects.
Key facts
- 1Shares dropped 43.7% in pre‑market trading after the discontinuation announcement. investing.com
- 2Shares fell 27.17% and reached a 52‑week low of $2.60 after the news. benzinga.com
- 3Shares plunged 31.2% to $2.01 following the partnership termination. investing.com
- 4The collaboration with Eli Lilly on FHD-909 and a SMARCA2 degrader program was ended. investing.com
- 5The board approved an approximately 40% reduction in staff, leaving about 65 full‑time employees. investing.com
- 6One‑time restructuring charges are expected to be roughly $2.3 million in Q4 2026. investing.com
Open questions
- Different reported percentage declines (43.7%, 27.17%, 31.2%) across sources.
Summary written by AlphAI from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.