Foghorn Therapeutics Reports Q2 2025 Financial Results with Increased Collaboration Revenue

Foghorn Therapeutics Inc. reported its financial results for the second quarter of 2025, revealing a collaboration revenue of $7.6 million, an increase from $6.9 million in the same period last year. For the first half of 2025, the company generated $13.5 million in collaboration revenue, up from $11.9 million in the first half of 2024. The growth in revenue is attributed to advancements in programs under the collaboration agreement with Eli Lilly and Company, which includes the development of the SMARCA2 selective inhibitor, FHD-909.

The company’s total operating expenses for the second quarter of 2025 were $28.7 million, a decrease from $33.5 million in the prior year. This reduction was primarily driven by lower research and development costs, which fell to $21.8 million from $23.8 million year-over-year. The decrease in expenses is partly due to the discontinuation of the independent development of FHD-286, which resulted in a significant reduction in related costs. General and administrative expenses also decreased to $6.9 million from $7.3 million, reflecting lower professional and consulting fees.

Foghorn's net loss for the second quarter was $17.9 million, compared to a net loss of $23.0 million in the same quarter of 2024, indicating an improvement of $5.1 million. For the first half of 2025, the net loss was $36.8 million, down from $48.0 million in the first half of 2024. The company’s accumulated deficit as of June 30, 2025, stood at $595.0 million, highlighting the ongoing financial challenges faced by the clinical-stage biopharmaceutical firm.

In terms of operational developments, Foghorn continues to advance its clinical programs, with FHD-909 now in Phase 1 trials. The company has also expanded its workforce, with a total employee count of 62 as of June 30, 2025, up from 51 a year earlier. The company’s cash, cash equivalents, and marketable securities totaled $198.7 million at the end of the quarter, providing a financial cushion to support ongoing research and development activities.

Looking ahead, Foghorn anticipates continued investment in its clinical programs and research initiatives, particularly in collaboration with Lilly. The company expects to incur significant expenses as it advances its product candidates and expands its operational capabilities. Foghorn has indicated that it will need to secure additional funding through equity offerings, collaborations, or other financing arrangements to sustain its operations and support its growth strategy in the coming years.