Foghorn Therapeutics Secures $50 Million Financing to Advance First-in-Class Cancer Pipeline
Key Insights
Foghorn Therapeutics raised $50 million in equity financing at a 30% premium to market price from leading biotech investors including BVF Partners (search), Deerfield Management (search), and Flagship Pioneering (search).
The company's Phase 1 trial of FHD-909, a first-in-class SMARCA2 (search) inhibitor targeting SMARCA4 (search)-mutant cancers including NSCLC, is progressing as planned with enrollment ongoing.
Multiple degrader programs are advancing toward IND filings in 2026, including selective CBP degraders for ER+ breast cancer and EP300 degraders for hematologic malignancies.
Foghorn Therapeutics announced the completion of a $50 million equity financing round priced at a 30% premium to its January 9, 2026 closing stock price, demonstrating strong investor confidence in the clinical-stage biotechnology company's chromatin regulatory platform and oncology pipeline. The financing, led by BVF Partners (search), Deerfield Management (search), founding investor Flagship Pioneering (search), and a leading biotech mutual fund, is expected to close on January 13, 2026.
"This equity raise represents an important vote of confidence from key biotech investors in our vision and execution," said Adrian Gottschalk, President and Chief Executive Officer of Foghorn. The company issued premium-priced warrants with exercise prices of 2 and 3 times the issue price as part of the transaction.
SMARCA2 Inhibitor Shows Promise in NSCLC
The company's lead program, FHD-909 (LY4050784), is advancing through a first-in-human Phase 1 multi-center trial targeting patients with SMARCA4 (search)-mutated cancers, with a primary focus on non-small cell lung cancer (NSCLC). The first-in-class oral SMARCA2 (search) selective inhibitor has demonstrated high selectivity over its closely related paralog SMARCA4 in preclinical studies.
SMARCA4 (search) mutations occur in up to 10% of NSCLC cases and are implicated in a significant number of solid tumors. Patients with SMARCA4 (BRG1)-mutant cancers face poor prognosis that worsens with each additional line of therapy, representing a significant unmet medical need with poor response rates and short progression-free survival.
The Phase 1 trial enrollment is progressing well following the dosing of the first patient in October 2024. Preclinical data supports enhanced anti-tumor activity of FHD-909 in combination with standard-of-care chemotherapies, anti-PD-1 pembrolizumab, and several novel KRAS inhibitors in NSCLC animal models. Pending successful Phase 1 dose escalation results, Foghorn and its partner Lilly (search) anticipate evaluating FHD-909 in combination studies in the front-line setting of NSCLC.
Strategic Partnership with Lilly
Foghorn maintains an ongoing strategic collaboration with Lilly (search) to develop novel oncology medicines, including a 50/50 U.S. co-development and co-commercialization agreement for its selective SMARCA2 (search) oncology program. The partnership encompasses both a selective inhibitor and a selective degrader, as well as an additional undisclosed oncology target and three discovery programs from Foghorn's proprietary Gene Traffic Control platform.
Advancing Degrader Portfolio
The company is making significant progress across its degrader portfolio, with multiple programs tracking toward Investigational New Drug (IND) filings in 2026.
Selective CBP Degrader Program
Foghorn's selective CBP degrader targets CBP, an acetyltransferase closely related to EP300. CBP lineage dependencies are established in several cancers, including breast cancer, and there is a synthetic relationship in EP300-mutated cancers, which include endometrial, cervical, ovarian, bladder, and colorectal cancer.
The lead candidate CBPd-171 (search) is currently in dose range finding toxicology studies and has demonstrated highly potent and selective activity. Preclinical data presented in October 2025 showed anti-tumor activity in EP300 mutant solid tumors and CBP-dependent cancers, including promising potential in ER+ breast cancer. Notably, CBPd-171 showed no impact on platelet counts and spared megakaryocytes, addressing previous tolerability concerns with dual CBP/EP300 inhibition.
The program features a Long Acting Injectable (LAI) formulation optimized for subcutaneous injection weekly or every other week for convenient administration, with IND-readiness anticipated in 2026.
Selective EP300 Degrader Program
Foghorn is developing a selective EP300 degrader for hematological malignancies and prostate cancer, with EP300 lineage dependencies established in diffuse large B-cell lymphoma (DLBCL) and multiple myeloma (MM). The program is tracking to IND-enabling studies in 2026, focusing on MM and DLBCL.
Preclinical data presented in October 2025 demonstrated broad anti-tumor activity in over 70% of all heme sub-lineages tested. The VHL-based selective degrader showed impressive efficacy in MM without hematological toxicities including thrombocytopenia. Importantly, EP300 degraders showed full efficacy in IMiD-resistant MM cell lines and demonstrated a tolerability profile with widespread potential for combinations.
Selective ARID1B Degrader Program
The company's selective ARID1B (search) degrader targets ARID1B in ARID1A (search)-mutated cancers. ARID1A is the most mutated subunit in the BAF complex and among the most mutated proteins in cancer, with mutations leading to dependency on ARID1B in several cancer types including endometrial, gastric, gastroesophageal junction, bladder, and NSCLC. ARID1B represents a major synthetic lethal target implicated in up to 5% of all solid tumors.
The first-in-class program is advancing toward in vivo proof of concept in 2026, with the company having developed VHL and cereblon-based bifunctional degraders with potential for oral delivery. Progress includes achieving selective degradation of ARID1B (search) and modulation of downstream target genes following ARID1B degradation.
Strong Financial Position
The equity financing strengthens Foghorn's balance sheet significantly. As of January 13, 2026, the company expects to have approximately $208.9 million in cash, cash equivalents, and marketable securities, inclusive of proceeds from the recent equity financing. This financial position allows for continued investment in the pipeline and extends the cash runway into the first half of 2028.
The financing structure included the sale of 2,030,314 shares of common stock at $6.71 per share, pre-funded warrants to purchase up to 5,421,250 shares at $6.7099 per warrant, and warrants to purchase up to 3,725,782 shares each at exercise prices of $13.42 and $20.13 per share.