Foghorn Therapeutics Secures $50 Million in Equity Financing, Bolstering Pipeline and Extending Runway to 2028
Foghorn Therapeutics (Nasdaq: FHTX) has announced a significant $50 million equity financing round, led by prominent biotech investors including BVF Partners, Deerfield Management, and Flagship Pioneering. The transaction, slated for completion by January 13, 2026, is poised to fortify Foghorn’s financial position, with an anticipated cash, cash equivalents, and marketable securities balance of $208.9 million post-financing. This strategic infusion of capital is projected to extend the company’s operational runway well into the first half of 2028, providing crucial runway for its ongoing clinical and preclinical development programs.
The financing comes at a critical juncture for Foghorn, as it advances its innovative oncology pipeline. The company’s lead program, FHD-909, an oral selective SMARCA2 inhibitor targeting cancers with SMARCA4 mutations, is on track with its Phase 1 dose-escalation trial. This trial is currently enrolling patients with non-small cell lung cancer (NSCLC), a significant area of unmet need where SMARCA4 mutations occur in up to 10% of cases and are associated with poor prognoses. The preclinical data for FHD-909, particularly in combination with standard-of-care agents like pembrolizumab and KRAS inhibitors, suggests a strong potential for enhanced anti-tumor activity, with plans to evaluate combination studies in the front-line NSCLC setting pending successful Phase 1 results.
Beyond FHD-909, Foghorn is making substantial headway with its novel degrader programs, which represent a cutting-edge approach to modulating gene expression in cancer. The company expects its selective CBP degrader program, showing promise in ER+ breast cancer and EP300-mutant solid tumors, to reach Investigational New Drug (IND) readiness in 2026. Concurrently, its selective EP300 degrader program, demonstrating superior preclinical efficacy in hematologic malignancies like diffuse large b-cell lymphoma (DLBCL) and multiple myeloma (MM), is also tracking towards IND-enabling studies within the same timeframe. These programs are designed to overcome the historical challenges associated with directly targeting these proteins, which share high similarity and whose dual inhibition can lead to dose-limiting toxicities.
Furthermore, Foghorn’s selective ARID1B degrader program, targeting ARID1A-mutated cancers where ARID1B acts as a synthetic lethal dependency, is advancing towards in vivo proof of concept in 2026. ARID1A mutations are prevalent across various solid tumors, making ARID1B a compelling target. The development of bifunctional degraders with potential for oral delivery marks a significant step forward in addressing this target.
The strategic collaboration with Eli Lilly and Company continues to be a cornerstone of Foghorn’s development strategy. This partnership encompasses the co-development and co-commercialization of Foghorn’s selective SMARCA2 oncology program in the U.S., along with additional discovery programs leveraging Foghorn’s proprietary Gene Traffic Control® platform.
While the financing strengthens Foghorn’s financial footing, the offering involves the sale of common shares and pre-funded warrants, which could lead to potential dilution for existing shareholders. The terms include the sale of 2,030,314 common shares and pre-funded warrants for up to 5,421,250 shares, priced at $6.71 per share. Additionally, warrants for up to 3,725,782 shares at $13.42 and another tranche for up to 3,725,782 shares at $20.13 are part of the offering. The purchase price of the common stock represents a 30% premium to the closing stock price on January 9, 2026, underscoring investor confidence.
The company’s robust balance sheet, projected to hold $208.9 million in cash and equivalents post-financing, will fuel continued investment in its pipeline and support operations through the first half of 2028. This financial stability is crucial for navigating the lengthy and capital-intensive development timelines inherent in the biopharmaceutical sector.
Foghorn Therapeutics is pioneering a new class of medicines targeting genetic dependencies within the chromatin regulatory system. Its proprietary Gene Traffic Control® platform enables systematic identification and validation of drug targets, with a primary focus on oncology. The company’s ability to secure significant funding at a premium, coupled with tangible progress in its lead clinical and preclinical programs, positions it as a noteworthy player in the development of novel cancer therapies. Investors will be closely monitoring the progression of FHD-909 through its Phase 1 trial and the advancement of the degrader programs towards IND filings, as these will be key catalysts for future value creation.
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