Foghorn to cut 40% of workforce after scrapping Lilly-partnered cancer drug

• FHD-909 was found to be generally safe but failed to demonstrate sufficient effectiveness in treating lung and solid tumors with SMARCA4 gene changes, prompting discontinuation of both the drug and a separate SMARCA2 protein-targeting program
• Workforce reductions will be completed in Q4 2025, resulting in approximately $2.3 million in severance-related charges
• Foghorn will refocus on its internal pipeline, including treatments for blood cancer, prostate cancer, hormone-sensitive breast cancer, and an oral drug for inflammatory diseases

Summary: Foghorn Therapeutics Halts Cancer Drug Development, Cuts 40% of Workforce

Key Developments:

Foghorn Therapeutics announced Thursday it is discontinuing development of FHD-909, an experimental cancer drug partnered with Eli Lilly, after the treatment failed to demonstrate sufficient benefit in early-stage trials. The decision ends the companies' 2021 partnership, which was originally valued at up to $1.6 billion.

Workforce Impact:

As a result of the program termination, Foghorn will reduce its workforce by approximately 40%, cutting staff from 106 employees (as of end-2025) to around 65 employees. The layoffs are expected to be completed in Q4 2025 and will result in approximately $2.3 million in severance-related charges.

Clinical Details:

While FHD-909 demonstrated an acceptable safety profile, its novel cancer-fighting mechanism did not deliver the required effectiveness to justify continued development. The drug was designed to treat lung and other solid tumors with SMARCA4 gene mutations. Additionally, Foghorn is discontinuing a separate program targeting the SMARCA2 protein involved in gene activity regulation.

Strategic Shift:

Following these setbacks, Foghorn will refocus resources on its internal pipeline, including experimental treatments for:

• Blood cancer
• Prostate cancer
• Hormone-sensitive breast cancer
• An oral drug candidate for inflammatory diseases

Market Implications:

This development represents a significant setback for both companies' oncology programs and highlights the ongoing challenges in developing targeted cancer therapies. The partnership dissolution and substantial workforce reduction signal Foghorn's need to preserve capital while pursuing alternative therapeutic approaches.