Foghorn Therapeutics Reports Q1 2025 Financial Results with Improved Revenue and Reduced Losses

Foghorn Therapeutics Inc. reported its financial results for the first quarter of 2025, revealing a collaboration revenue of $5.95 million, an increase from $5.05 million in the same period last year. The company’s operating expenses decreased to $28.87 million from $33.24 million, primarily due to reduced research and development costs, which fell to $21.63 million from $25.53 million. The net loss for the quarter was $18.83 million, a notable improvement compared to the $25.02 million loss reported in the first quarter of 2024. This resulted in a net loss per share of $0.30, down from $0.59 in the prior year.

Foghorn's total assets decreased to $258.69 million as of March 31, 2025, from $283.98 million at the end of 2024. The company’s cash and cash equivalents increased to $61.03 million, up from $55.45 million, while marketable securities decreased to $159.56 million from $188.29 million. The accumulated deficit grew to $577.02 million, reflecting the ongoing investment in research and development activities. The company’s total liabilities also decreased slightly to $320.34 million from $329.51 million.

Strategically, Foghorn continues to advance its collaboration with Eli Lilly and Company, particularly focusing on the development of FHD-909, a selective allosteric ATPase inhibitor of SMARCA2. The transition of FHD-909 to Lilly for further development has initiated a 50/50 cost-sharing agreement, which is expected to impact future financial results as the clinical trials progress. The company is also actively pursuing additional research programs and product candidates, with a focus on leveraging its Gene Traffic Control platform.

Operationally, Foghorn reported a decrease in research and development expenses, attributed to the discontinuation of the independent development of FHD-286 and a reduction in costs associated with other programs. The company is currently managing eight programs, with one in clinical-stage development. As of March 31, 2025, Foghorn had 62.85 million shares outstanding, reflecting an increase in share count due to stock options and employee stock purchase plans.

Looking ahead, Foghorn anticipates continued operating losses as it invests in the advancement of its clinical programs and research initiatives. The company expects its cash, cash equivalents, and marketable securities to be sufficient to fund operations for at least the next 12 months. However, it acknowledges the need for additional funding through equity offerings, collaborations, or other financing arrangements to support its growth strategy and ongoing development efforts.