Foghorn Therapeutics Reports $86.6 Million Net Loss for 2024, Decreased Collaboration Revenue

Foghorn Therapeutics Inc. reported a net loss of $86.6 million for the year ended December 31, 2024, compared to a net loss of $98.4 million in 2023. Collaboration revenue decreased to $22.6 million in 2024 from $34.2 million in 2023, primarily due to the termination of the Merck Collaboration Agreement and the subsequent recognition of deferred revenue, partially offset by increased revenue from the Lilly Collaboration Agreement. Research and development expenses decreased by $15.2 million to $94.5 million in 2024, while general and administrative expenses decreased by $4 million to $28.4 million. The company recorded a non-cash impairment of long-lived assets charge of $2.4 million in 2024, related to a sublease of office space.

Significant changes compared to the previous fiscal year include a decrease in both collaboration revenue and research and development expenses, alongside a decrease in general and administrative expenses. The decrease in collaboration revenue reflects the termination of the Merck agreement and the subsequent recognition of deferred revenue. The decrease in research and development expenses resulted from lower personnel costs and decreased external research costs, partially offset by increased spending on Lilly-partnered programs. The reduction in general and administrative expenses was primarily due to lower personnel costs.

During the year, Foghorn transitioned its FHD-909 program to Eli Lilly and Company, triggering a 50/50 cost-sharing arrangement. The company also completed a public offering in May 2024, raising net proceeds of $102.8 million. In December 2024, Foghorn announced the discontinuation of independent development of FHD-286. As of December 31, 2024, Foghorn had 112 full-time employees, with 57 holding M.D. or Ph.D. degrees.

Key operational developments include the initiation of a Phase 1 dose escalation trial for FHD-909 in October 2024, in collaboration with Lilly. The company is also advancing several other product candidates in preclinical development, targeting genetically defined dependencies within the chromatin regulatory system. Foghorn's proprietary Gene Traffic Control® platform continues to be central to its drug discovery efforts. The company's pipeline addresses more than 20 tumor types, with a potential to impact over 500,000 new cancer patients annually.

Foghorn expects to continue incurring significant losses for the foreseeable future and will require substantial additional funding to support its operations and growth strategy. The company plans to finance its operations through a combination of equity offerings, debt financings, collaborations, and licensing arrangements. The company's future success depends on the successful development and commercialization of its product candidates, obtaining regulatory approvals, and securing adequate reimbursement from third-party payors. The company's financial statements and disclosures are subject to various accounting estimates and judgments, including revenue recognition and the accrual of research and development expenses.