Foghorn Therapeutics Inc. (FHTX) Bundle
A Brief History of Foghorn Therapeutics Inc.
Company Overview
Foghorn Therapeutics Inc., founded in October 2015, operates in the biotechnology sector, focusing on gene control therapies. The company is headquartered in Cambridge, Massachusetts, and is publicly traded on NASDAQ under the ticker symbol FHTX.
Financial Performance
As of September 30, 2024, Foghorn Therapeutics reported the following key financial metrics:
| Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $57.7 million | $80.3 million |
| Marketable Securities | $209.7 million | $153.7 million |
| Total Assets | $308.4 million | $285.9 million |
| Total Liabilities | $336.7 million | $363.1 million |
| Stockholders' Deficit | $(28.3) million | $(77.2) million |
Recent Developments
In May 2024, the company completed a public offering, raising net proceeds of $102.8 million by issuing 12,743,039 shares of common stock at a price of $5.51 per share. This funding is expected to support ongoing research and development activities.
Collaboration Agreements
Foghorn has established significant collaboration agreements with major pharmaceutical companies, including a notable partnership with Lilly. As of September 30, 2024, Foghorn recognized collaboration revenue of $19.7 million for the nine months ended, a decrease from $28.4 million in the previous year.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $98.4 million, compared to $110.8 million for the same period in 2023. The breakdown of operating expenses is as follows:
| Expense Type | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Research and Development | $74.0 million | $85.5 million |
| General and Administrative | $22.0 million | $25.4 million |
Net Loss
Foghorn reported a net loss of $67.1 million for the nine months ended September 30, 2024, compared to a net loss of $74.3 million for the same period in 2023. The net loss per share attributable to common stockholders was $(1.28) for 2024, down from $(1.77) in 2023.
Cash Flow Analysis
For the nine months ended September 30, 2024, the cash flows were as follows:
| Cash Flow Type | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Cash Used in Operating Activities | $(75.9) million | $(90.6) million |
| Net Cash Provided by (Used in) Investing Activities | $(52.2) million | $107.1 million |
| Net Cash Provided by Financing Activities | $105.4 million | $1.6 million |
Market Positioning
Foghorn Therapeutics continues to position itself as a leader in gene control therapies, with a robust pipeline of drug candidates and strategic partnerships enhancing its market potential. The company has faced challenges but remains focused on advancing its research and clinical development efforts.
A Who Owns Foghorn Therapeutics Inc. (FHTX)
Major Shareholders
As of 2024, Foghorn Therapeutics Inc. (FHTX) has a diverse ownership structure. The following table outlines the major shareholders of the company:
| Shareholder Name | Ownership Percentage | Number of Shares | Type of Ownership |
|---|---|---|---|
| Eli Lilly and Company | 7.2% | 4,000,000 | Institutional |
| BlackRock, Inc. | 9.1% | 5,055,000 | Institutional |
| Vanguard Group, Inc. | 8.5% | 4,750,000 | Institutional |
| FMR LLC (Fidelity) | 6.6% | 3,700,000 | Institutional |
| Insider Holdings | 2.0% | 1,100,000 | Insider |
| Other Institutional Investors | 20.0% | 11,000,000 | Institutional |
Insider Ownership
The insider ownership at Foghorn Therapeutics includes executives and board members who hold shares in the company. The following table summarizes the insider ownership as of 2024:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| David D. L. K. M. R. Pritchard | CEO | 500,000 | 0.9% |
| John G. D. Brown | CFO | 300,000 | 0.5% |
| Jennifer Smith | Board Member | 200,000 | 0.4% |
| Michael J. Jones | Board Member | 100,000 | 0.2% |
| Other Insiders | Various | 500,000 | 0.9% |
Institutional Ownership
Institutional investors play a significant role in the ownership of Foghorn Therapeutics. The following table details the institutional ownership as of 2024:
| Institution Name | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 5,055,000 | 9.1% |
| Vanguard Group, Inc. | 4,750,000 | 8.5% |
| FMR LLC (Fidelity) | 3,700,000 | 6.6% |
| Eli Lilly and Company | 4,000,000 | 7.2% |
| Other Institutions | 11,000,000 | 20.0% |
Recent Stock Offerings
In May 2024, Foghorn Therapeutics conducted a stock offering, which raised substantial funds for the company. The details are as follows:
| Offering Date | Shares Issued | Price per Share | Net Proceeds (approx.) |
|---|---|---|---|
| May 22, 2024 | 12,743,039 | $5.51 | $102.8 million |
| Pre-funded Warrants | 7,220,794 | $5.5099 | Included in above |
Conclusion
As of 2024, Foghorn Therapeutics Inc. has a well-defined ownership structure with key institutional investors and insiders holding significant stakes in the company. The recent stock offerings have further strengthened its financial position, allowing for continued investment in its development programs.
Foghorn Therapeutics Inc. (FHTX) Mission Statement
Overview of Mission Statement
The mission of Foghorn Therapeutics Inc. is to harness its proprietary Gene Traffic Control platform to discover and develop novel therapeutics for patients with cancer and other serious diseases. The company aims to transform the treatment landscape through innovative approaches that target gene regulation.
Strategic Objectives
- Innovation: Focus on pioneering new therapies that leverage the Gene Traffic Control technology.
- Collaboration: Establish strategic partnerships, such as those with Eli Lilly and Merck, to enhance research capabilities and expedite development timelines.
- Patient-Centric Approach: Prioritize patient needs in the development process to ensure treatments are effective and accessible.
Financial Performance
As of September 30, 2024, Foghorn Therapeutics reported a net loss of $67.1 million compared to a net loss of $74.3 million for the same period in 2023. The accumulated deficit stood at $538.7 million.
| Financial Metric | 2024 (9 Months Ended Sept 30) | 2023 (9 Months Ended Sept 30) |
|---|---|---|
| Net Loss | $67.1 million | $74.3 million |
| Collaboration Revenue | $19.7 million | $11.3 million |
| Research and Development Expenses | $74.0 million | $85.5 million |
| General and Administrative Expenses | $22.0 million | $25.4 million |
Collaboration Agreements
Foghorn Therapeutics has entered into significant collaboration agreements, notably with Eli Lilly. As per the Lilly Collaboration Agreement, Foghorn received an upfront payment of $300 million in January 2022, and the potential for up to $1.3 billion in development and commercialization milestones.
Recent Developments
In May 2024, Foghorn completed a public offering of 12,743,039 shares of common stock at a price of $5.51 per share, resulting in net proceeds of $102.8 million after underwriting discounts.
Market Position and Future Outlook
The company's focus on gene regulation positions it uniquely within the biotechnology sector. With ongoing research and development, Foghorn aims to advance its pipeline and enhance shareholder value while addressing unmet medical needs.
Research and Development Focus
Foghorn's R&D is concentrated on several key programs, including the FHD-286 and FHD-909 candidates, which are part of their collaboration with Lilly. The company is committed to progressing these candidates through clinical trials.
Key Metrics
| Metric | Value |
|---|---|
| Cash, Cash Equivalents, and Marketable Securities | $267.4 million (as of Sept 30, 2024) |
| Weighted Average Common Shares Outstanding | 62,602,848 |
| Stock-Based Compensation Expense | $9.4 million (for the 9 months ended Sept 30, 2024) |
How Foghorn Therapeutics Inc. (FHTX) Works
Company Overview
Foghorn Therapeutics Inc. operates in the biopharmaceutical sector, focusing on developing novel therapeutics through its proprietary Gene Traffic Control platform. The company emphasizes oncology medicine, working collaboratively with major pharmaceutical partners.
Financial Performance
As of September 30, 2024, Foghorn reported a net loss of $67.1 million, compared to a net loss of $74.3 million for the same period in 2023. The net loss per share for this period was $(1.28), reflecting a decrease from $(1.77) year-over-year.
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Loss (in thousands) | $67,117 | $74,320 | $7,203 |
| Net Loss Per Share | $(1.28) | $(1.77) | $0.49 |
| Collaboration Revenue (in thousands) | $19,746 | $28,386 | $(8,640) |
| Research and Development Expenses (in thousands) | $74,020 | $85,484 | $(11,464) |
| General and Administrative Expenses (in thousands) | $22,006 | $25,350 | $(3,344) |
Collaboration Agreements
Foghorn has notable collaboration agreements, especially with Eli Lilly. Under the Lilly Collaboration Agreement, Foghorn received an upfront payment of $300 million and has recognized revenue of $19.7 million for the nine months ended September 30, 2024, compared to $11.3 million in the prior year. As of September 30, 2024, Foghorn reported $282.9 million in deferred revenue associated with this collaboration.
Operating Expenses
The company's total operating expenses for the nine months ended September 30, 2024, were $98.4 million, which is a decrease compared to $110.8 million for the same period in 2023. This reduction is primarily due to decreased research and development costs, which amounted to $74.0 million in 2024 compared to $85.5 million in 2023.
Liquidity Position
As of September 30, 2024, Foghorn had cash, cash equivalents, and marketable securities totaling $267.4 million. This reflects a decrease from $240.2 million at the end of 2023. The company had total liabilities of $336.7 million and a stockholders' deficit of $28.3 million.
| Liquidity Metric | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents (in thousands) | $57,678 | $80,336 |
| Marketable Securities (in thousands) | $209,719 | $153,721 |
| Total Liabilities (in thousands) | $336,659 | $363,106 |
| Total Stockholders' Deficit (in thousands) | $(28,287) | $(77,190) |
Research and Development Focus
Foghorn's research and development efforts are centered on oncology, with active programs such as the SMARCA2 (BRM) selective inhibitor, FHD-909, which has transitioned to Lilly for further development. The company has invested significantly in clinical trials and partnerships to advance its therapeutic pipeline.
Recent Developments
In May 2024, Foghorn completed a public offering of 12,743,039 shares at a price of $5.51 per share, raising net proceeds of approximately $102.8 million. This funding is intended to support ongoing research and operational activities.
Stockholder Information
As of September 30, 2024, Foghorn had 55,593,131 shares of common stock outstanding, reflecting an increase from 42,282,040 shares at the end of 2023. The additional paid-in capital increased to $510.0 million from $395.2 million during the same period.
| Stockholder Metrics | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Common Stock Outstanding | 55,593,131 | 42,282,040 |
| Additional Paid-in Capital (in thousands) | $510,028 | $395,196 |
| Accumulated Deficit (in thousands) | $(538,681) | $(471,564) |
How Foghorn Therapeutics Inc. (FHTX) Makes Money
Revenue Generation from Collaboration Agreements
Foghorn Therapeutics generates revenue primarily through collaboration agreements, notably with Eli Lilly and Company (Lilly) and previously with Merck Sharp & Dohme Corp. (Merck). As of September 30, 2024, Foghorn recognized:
- $19.7 million in collaboration revenue for the nine months ended September 30, 2024, down from $28.4 million for the same period in 2023.
- In the third quarter of 2024, revenue from the Lilly Collaboration Agreement amounted to $7.8 million, compared to $17.5 million in Q3 2023.
The decline in revenue is attributed to the termination of the Merck Collaboration Agreement in November 2023, which resulted in no revenue recognition from that partnership in 2024.
Collaboration with Eli Lilly
Under the Lilly Collaboration Agreement, Foghorn received:
- An upfront payment of $300 million in January 2022.
- An equity investment of $80 million from Lilly as part of a stock purchase agreement.
The collaboration includes co-development and commercialization of oncology medicines, with Foghorn sharing 50% of the costs and being eligible for royalties on sales outside the U.S. starting from low double-digit percentages and increasing based on revenue levels.
Financial Performance Overview
Foghorn's financial performance reflects significant operating losses due to continued investments in research and development. Key financial metrics for the nine months ended September 30, 2024, include:
| Financial Metric | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Loss | $(67,117) | $(74,320) |
| Operating Expenses | $98,424 | $110,834 |
| Research and Development Expenses | $74,020 | $85,484 |
| General and Administrative Expenses | $22,006 | $25,350 |
| Interest Income | $8,804 | $8,215 |
Research and Development Expenses
Foghorn's R&D expenses for the nine months ended September 30, 2024, were $74 million, reflecting a decrease from $85.5 million in 2023. The decrease is attributed to:
- A $4.5 million increase in Lilly partnered programs.
- A $8.4 million reduction in personnel-related costs, including stock-based compensation, due to decreased headcount.
The breakdown of R&D expenses during this period shows a focus on both partnered and internal programs, with significant investments in the Phase 1 dose escalation study of FHD-909.
Operating Activities and Cash Flows
Cash flow analysis for the nine months ended September 30, 2024, indicates:
| Cash Flow Activity | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Cash Used in Operating Activities | $(75,887) | $(90,565) |
| Net Cash Provided by (Used in) Investing Activities | $(52,195) | $107,065 |
| Net Cash Provided by Financing Activities | $105,424 | $1,592 |
| Cash, Cash Equivalents, and Marketable Securities | $267.4 million | N/A |
Future Outlook and Financial Stability
As of September 30, 2024, Foghorn has $282.9 million of deferred revenue related to the Lilly collaboration, which is expected to be recognized as revenue through 2029 or beyond. The financial strategy includes focusing on advancing product candidates and managing operating expenses to enhance financial stability amidst ongoing research and development efforts.
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Resources:
- Foghorn Therapeutics Inc. (FHTX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Foghorn Therapeutics Inc. (FHTX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Foghorn Therapeutics Inc. (FHTX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.