Published • loading... • Updated
Foghorn to cut 40% of workforce after scrapping Lilly-partnered cancer drug
The biotech said the drug was safe but did not show enough benefit in Phase 1 testing, and the layoffs will leave about 65 employees.
- On Thursday, Foghorn Therapeutics and Eli Lilly ended their oncology partnership, originally valued at up to $1.6 billion, prompting the Watertown, Massachusetts-based biotech to cut about 40% of its workforce.
- Clinical data from the Phase 1 trial of cancer candidate FHD-909 failed to show sufficient efficacy, leading both companies to halt development and discontinue a separate selective SMARCA2 degrader program.
- Foghorn's stock lost over 40% of its value following Thursday's announcement, opening at $2.08, while the company expects to record about $2.3 million in charges related to layoffs leaving it with about 65 employees.
- Foghorn Chief Executive Officer Adrian Gottschalk stated the company will refocus resources on its proprietary portfolio, including potential treatments for blood cancer, prostate cancer, and an experimental oral inflammatory drug.
- Restructuring is expected to extend Foghorn's cash runway into the second half of 2029; Citizens analyst Silvan Turkcan downgraded the stock to Market Perform, citing few visible catalysts ahead for remaining assets.
Insights by Ground AI
11 Articles
11 Articles
Coverage Details
Total News Sources11
Leaning Left0Leaning Right1Center3Last UpdatedBias Distribution75% Center
Bias Distribution
- 75% of the sources are Center
75% Center
C 75%
R 25%
Factuality
To view factuality data please Upgrade to Premium
