Foghorn plunges after scrapping Lilly-backed drug program
FHTX•Foghorn Therapeutics discontinued its experimental cancer drug FHD-909 after it failed to show enough benefit in an early-stage trial, and will not extend its partnership with Eli Lilly, originally valued at up to $1.6 billion. Foghorn shares fell 44% premarket, and the company plans to cut about 40% of its workforce, with about $2.3 million in expected layoff-related charges.
1. Drug program discontinued
Foghorn Therapeutics discontinued development of FHD-909, an experimental cancer drug it was developing with Eli Lilly, after the drug failed to show enough benefit in an early-stage trial. The companies will not extend their 2021 partnership, originally valued at up to $1.6 billion. Foghorn said it will cut about 40% of its workforce and expects about $2.3 million in layoff-related charges, while focusing on its own blood and prostate cancer treatments.
