Foghorn Therapeutics disclosed on Thursday that it is terminating development of its experimental cancer therapy FHD‑909, a drug that was being co‑developed with Eli Lilly under a partnership valued at up to $1.6 billion. The decision follows an early‑stage trial that failed to demonstrate sufficient efficacy, even though the compound was generally safe.
Impact on employment
In response to the partnership’s termination, Foghorn said it will reduce its workforce by about 40%. The layoff plan will bring the company’s headcount down to roughly 65 employees, down from 106 at the end of 2025, according to its most recent annual report. The reductions are slated to be completed in the fourth quarter of 2026, and the company expects to record approximately $2.3 million in related charges.
What the trial showed
FHD‑909 was designed to treat certain lung and other solid tumours that carry alterations in the SMARCA4 gene. While the drug was deemed safe in the trial, it did not achieve the level of tumour‑shrinkage or disease‑control needed to justify further development. Consequently, Foghorn and Lilly will not advance the candidate to the next phase of testing.
Other programs affected
Alongside the cancellation of FHD‑909, Foghorn also announced it will discontinue a separate research program targeting SMARCA2, a protein that helps regulate gene activity and that some cancers rely on. The company’s statement emphasized that these decisions allow it to reallocate resources toward its internal pipeline.
Future focus
Foghorn said its remaining efforts will concentrate on several areas of its own pipeline, including potential treatments for blood cancers, prostate cancer, hormone‑sensitive breast cancer, and an experimental oral therapy for inflammatory diseases. By narrowing its focus, the company aims to accelerate development of these candidates and restore investor confidence.
Market reaction
Shares of Foghorn Therapeutics fell more than 48% in pre‑market trading following the announcement, reflecting investor concerns about the abrupt shift in strategy and the sizable workforce reduction.
Industry context
The biotech sector has seen a wave of partnership terminations and restructuring as companies reassess pipelines after mixed clinical outcomes. Foghorn’s decision underscores the high‑risk nature of oncology drug development, where early‑stage data often dictate the viability of large‑scale collaborations.
Company outlook
While the layoffs and partnership termination represent a significant contraction, Foghorn’s leadership expressed confidence that a more focused portfolio will position the firm for sustainable growth. The company plans to continue engaging with investors and stakeholders to outline its revised strategic roadmap.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
