What Happened

Foghorn Therapeutics announced a 40% workforce reduction after its collaboration with Eli Lilly collapsed. The partnership, initiated in 2021 with $380M in upfront and equity, ended after FHD-909 (a SMARCA2 inhibitor) showed insufficient efficacy in a phase 1 trial for SMARCA4-mutant non-small cell lung cancer. The companies also abandoned a SMARCA2 degrader program and an undisclosed oncology target.

Who Is Affected

The layoffs will reduce Foghorn’s headcount from 106 to approximately 65 full-time employees. The restructuring follows a broader pipeline pivot: in late 2024, the company discontinued its only wholly owned clinical-stage candidate, FHD-286. The remaining cash ($167.6M as of June) is expected to fund priority preclinical programs into the second half of 2029.

Market Impact

• Foghorn’s struggle with the SMARCA2/4 synthetic lethality target echoes setbacks at Prelude Therapeutics, which paused its SMARCA2 degrader program after a phase 1 underperformance.
• The layoff signals a shift from clinical to preclinical focus, potentially increasing demand for CRO support, outplacement services, and R&D optimization vendors.
• Lilly’s exit from the collaboration may create opportunities for other partners or service providers to fill the gap.

What to Watch

Foghorn will now prioritize its EP300 degrader program for hematological malignancies and prostate cancer, with a phase 1 filing targeted next year. However, an “unexpected operational issue” at a third-party CRO recently delayed its CBP degrader program (CBPd-171). The company also has an oral small molecule in immunology/inflammation expected to advance in 2025. Sales teams should monitor these timelines for vendor needs.

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