Foghorn Records $58.2 Million Profit After Dropping FHD-909

The Tip Desk · November 9, 2026 · 3 min read

Collaboration revenue reached $83.5 million in the third quarter, including a $74.1 million catch-up primarily related to updated estimated future costs for decisions not to advance FHD-909 and the SMARCA2 selective degrader; earnings were $0.81 a share.

Foghorn Therapeutics Inc. (FHTX) reported collaboration revenue of $83.5 million for the three months ended September 30, 2026, compared with $8.2 million a year earlier. The $75.4 million increase was driven by a $74.1 million cumulative catch-up adjustment primarily related to updated estimated future costs for the decision not to advance FHD-909 and the SMARCA2 selective degrader.

The biotechnology company swung to net income of $58.2 million, or $0.81 a share, from a net loss of $15.8 million, or $0.25 a share, in the year-ago quarter. Operating income was $56.6 million, versus an operating loss of $18.5 million.

In its second-quarter update, Foghorn had described FHD-909 (LY4050784) as a Phase 1 dose-escalation trial advancing with non-small cell lung cancer as the primary target population. The third-quarter update instead cited the decision not to advance FHD-909 and the SMARCA2 selective degrader as the driver of the catch-up. Deferred revenue, total, was $146.3 million as of September 30, 2026, versus $249.2 million at year-end 2025. Total stockholders’ deficit narrowed to $14.1 million from $108.5 million.

Research and development expenses were $18.8 million, down from $20.0 million. The company attributed the $1.2 million decrease to lower Lilly-partnered program costs, facilities and IT-related expenses, and personnel-related costs, partially offset by an increase in early development and other external costs. General and administrative expenses were $5.8 million, versus $6.7 million. Restructuring costs of $2.3 million, versus none a year earlier, lifted total operating expenses to $26.9 million from $26.7 million.

Cash, cash equivalents, and marketable securities were $156.2 million as of September 30, 2026, versus approximately $168 million as of June 30, 2026. The company said that balance provides cash runway into the second half of 2029, later than the first-half-of-2028 runway it cited after the second quarter.

President and Chief Executive Officer Adrian Gottschalk said the company’s focus is on advancing its wholly owned portfolio, including a novel oral small molecule in inflammatory bowel disease with potential first-in-human trials by the end of 2027, and a selective EP300 degrader with an IND targeted for 2027.

The second-quarter update targeted an IND in 2027 for an undisclosed immunology and inflammation program, while the third-quarter update described potential first-in-human studies for the IBD program by the end of 2027. Dose-range finding studies are expected to begin in the fourth quarter of 2026. Preclinical data, the company said, showed suppression of disease activity in a T-cell transfer colitis model and an IL-10 knock-out model, with efficacy comparable to an anti-IL-12/23p40 antibody positive control.

The selective EP300 degrader is being developed for hematological malignancies, with a focus on multiple myeloma and diffuse large B-cell lymphoma. Foghorn said preclinical data showed complete responses versus the clinical benchmark dual CBP/EP300 inhibitor inobrodib, superior safety by body-weight loss and platelet counts, and tumor regression in a multiple myeloma xenograft model of acquired pomalidomide resistance. An IND is targeted in 2027.

The company is also advancing a small-molecule induced-proximity approach, called ERIP, intended to degrade secreted and transmembrane proteins before they reach the cell surface or circulation, with the goal of antibody-like efficacy through small molecules.

Weighted average basic shares outstanding were 71.5 million in the third quarter, versus 63.0 million a year earlier. Diluted earnings were $0.80 a share.