Foghorn Therapeutics Inc.

What they do

Foghorn uses its Gene Traffic Control platform to identify and drug components of the chromatin regulatory system, which controls gene expression and is implicated in roughly 50% of cancers. It works on more than seven programs covering SMARCA2, CBP, EP300 and ARID1B, using protein degraders, allosteric enzymatic inhibitors and transcription factor disruptors. Its most advanced asset, FHD-909, is a SMARCA2 selective inhibitor in a Phase 1 dose escalation trial run by Lilly. Other candidates, including FHD-286, remain preclinical or were discontinued.

Revenue drivers

• Lilly collaboration — SMARCA2 program — The 2021 Lilly agreement covers SMARCA2 (inhibitor and degrader) plus an undisclosed oncology target and up to three discovery programs, with a 50/50 U.S. co-development and co-commercialization structure; collaboration revenue is recognized as work is performed.
• Collaboration revenue timing — All reported revenue is collaboration revenue; Q2 2026 revenue of $16.1M included a $14.2M cumulative catch-up adjustment tied to the scheduled December 2026 expiration of the Lilly research term, so the quarter overstates underlying run-rate.
• Wholly-owned pipeline (no revenue today) — Selective EP300 degraders, selective CBP degrader FHT-171, and a novel oral immunology and inflammation small molecule are wholly owned and generate no revenue; they are the stated future value drivers with INDs targeted in 2027.

Recent performance

Q2 2026 collaboration revenue was $16.1M versus $7.6M in Q2 2025, with $14.2M of the increase from a cumulative catch-up adjustment due to updated future costs around the December 2026 research term expiration. Six-month revenue was $19.3M versus $13.5M. R&D fell to $18.5M from $21.8M on lower Lilly program costs, lower facilities costs from a new Watertown lease, and the FHD-286 discontinuation. Net loss narrowed to $7.2M from $17.9M. Full-year 2025 revenue was $30.9M with a net loss of $74.3M.

Strategy

The company is prioritizing FHD-909's Phase 1 dose escalation in SMARCA4-mutant NSCLC with Lilly, then combination studies with pembrolizumab if escalation succeeds. It is advancing wholly-owned assets: selective EP300 degraders for multiple myeloma, the CBP degrader FHT-171 in ER+ breast cancer models, and an oral small molecule in immunology and inflammation, each with an IND targeted in 2027. It discontinued independent FHD-286 development in relapsed/refractory AML and uveal melanoma and shut down that Phase 1 trial. Cost reduction includes lower headcount and a cheaper Watertown, Massachusetts lease.

Risks

• No approved products; unproven clinical path — Foghorn has never completed a clinical trial, obtained marketing approval, or manufactured at commercial scale, and its only clinical asset is partnered.
• Partner dependence on Lilly — All revenue comes from the Lilly collaboration, and the research term expires in December 2026, after which economics and revenue recognition may change materially.
• Negative shareholder equity and accumulated losses — At June 30, 2026 total liabilities of $284.4M exceeded total assets of $203.4M, producing shareholder equity of negative $81.0M.
• Dilution and financing risk — The company has incurred losses since inception, expects losses to continue, and will need additional capital beyond its stated runway into the first half of 2028.

Outlook

Management says FHD-909's Phase 1 trial is advancing as planned with NSCLC as the primary population, and that Foghorn and Lilly anticipate combination studies with pembrolizumab pending successful dose escalation. The company targets 2027 INDs for its selective EP300 degraders and its oral immunology and inflammation molecule. It reports cash, cash equivalents and marketable securities of approximately $168M supporting a runway into the first half of 2028.