Foghorn Therapeutics Highlights January Equity Financing, Program Progress and Strategic Objectives for 2026

Rhea-AI Summary

Foghorn Therapeutics (Nasdaq: FHTX) announced a $50.0 million equity financing led by BVF Partners, Deerfield Management, Flagship Pioneering and a biotech mutual fund, expected to close Jan 13, 2026. The company reported an estimated $208.9 million in cash, cash equivalents, and marketable securities inclusive of the financing, extending runway into the first half of 2028. Clinical and preclinical progress includes an on‑track Phase 1 dose‑escalation trial of FHD‑909 in SMARCA4‑mutant NSCLC, and IND‑tracking selective degrader programs for CBP, EP300, and ARID1B with IND/enabling milestones anticipated in 2026.

Positive

• Equity financing of $50.0M committed by strategic biotech investors
• Estimated cash position of $208.9M inclusive of financing
• Phase 1 trial of FHD‑909 enrolling SMARCA4‑mutant NSCLC patients and on track
• Selective CBP, EP300, and ARID1B degrader programs tracking to IND/enabling studies in 2026

Negative

• Offering includes sale of 2,030,314 common shares and pre‑funded warrants for up to 5,421,250 shares (potential dilution)
• Warrants issued include up to 3,725,782 shares at $13.42 and up to 3,725,782 shares at $20.13
• Key therapeutic programs remain preclinical or early clinical; no efficacy in humans yet for degrader programs

News Market Reaction

+23.64%

1 alert

+23.64% News Effect

On the day this news was published, FHTX gained 23.64%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Equity financing size: $50 million Cash & securities: $208.9 million Common shares issued: 2,030,314 shares +5 more

8 metrics

Equity financing size $50 million January 2026 equity financing with BVF, Deerfield, Flagship and others

Cash & securities $208.9 million Expected cash, cash equivalents and marketable securities as of Jan 13, 2026

Common shares issued 2,030,314 shares Shares of common stock to be sold at $6.71 per share

Common share price $6.71 per share Purchase price for common stock in January 2026 financing

Pre-funded warrants 5,421,250 warrants Pre-funded warrants at $6.7099 each, $0.0001 exercise price

Warrant exercise prices $13.42 and $20.13 Exercise prices for common stock warrants issued in financing

SMARCA4 NSCLC share Up to 10% SMARCA4 mutated in up to 10% of non-small cell lung cancer

ARID1B target prevalence Up to 5% ARID1B synthetic lethal target implicated in up to 5% of solid tumors

Market Reality Check

Price: $6.02 Vol: Volume 164,487 is in line...

normal vol

$6.02 Last Close

Volume Volume 164,487 is in line with the 166,316 share 20-day average. normal

Technical Price $5.16 is trading above the 200-day MA at $4.67.

Peers on Argus

FHTX slipped 1.34% while sector peers were mixed: ALEC gained 3.91%, OMER and CA...

1 Up

FHTX slipped 1.34% while sector peers were mixed: ALEC gained 3.91%, OMER and CAPR fell more than 8%. Only one peer (MREO) appeared in momentum scans, moving up, pointing to stock-specific drivers.

Historical Context

5 past events · Latest: Nov 25 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 25	Conference participation	Neutral	+3.5%	Participation in Evercore healthcare conference with fireside chat and webcast.
Nov 05	Earnings & pipeline	Positive	+13.3%	Q3 2025 update with $180.3M cash and multi-program degrader progress.
Nov 03	Investor conferences	Neutral	-4.5%	Announcement of participation in three November 2025 investor conferences.
Oct 30	Degrader pipeline update	Positive	+1.9%	Updates on Selective ARID1B, CBP, and EP300 degrader programs and investor event.
Oct 16	ARID1B progress	Positive	-2.5%	Significant progress for Selective ARID1B degrader highlighted at TPD summit.

Pattern Detected

Positive R&D and financial updates have often aligned with gains, though at least one scientific update saw a negative reaction, indicating mixed but generally constructive responses to pipeline news.

Recent Company History

Over the last few months, Foghorn reported steady progress across its degrader pipeline and collaboration with Lilly. A Q3 2025 update highlighted $180.3M in cash and a runway into 2028, which coincided with a 13.31% gain. Multiple conference and investor events in October–November 2025 emphasized advances in Selective ARID1B, CBP, and EP300 degraders, with mostly modest price moves. Today’s financing and 2026 objectives build directly on that theme of strengthening liquidity while advancing early-stage oncology programs.

Market Pulse Summary

The stock surged +23.6% in the session following this news. A strong positive reaction aligns with t...

Analysis

The stock surged +23.6% in the session following this news. A strong positive reaction aligns with the combination of premium-priced financing and extended cash runway into 2028 highlighted in this update. Prior financial and pipeline news, such as the Q3 2025 update that preceded a 13.31% gain, showed the stock can respond well to funding strength and R&D progress. However, investors have also seen occasional pullbacks on scientific updates, so enthusiasm could moderate if future data or execution milestones underwhelm.

Key Terms

pre-funded warrants, warrants, phase 1, investigational new drug (ind), +4 more

8 terms

pre-funded warrants financial

"pre-funded warrants to purchase up to an aggregate of 5,421,250 shares"

Pre-funded warrants are financial instruments that give investors the right to purchase a company's stock at a set price, but with most or all of the purchase price paid upfront. They function like a coupon or gift card for stock, allowing investors to buy shares later at a fixed price, which can be beneficial if they want to avoid future price increases. This makes them important for investors seeking flexibility and certainty in their investment plans.

warrants financial

"as well as warrants to purchase up to 3,725,782 shares of common stock"

Warrants are special documents that give you the right to buy a company's stock at a set price before a certain date. They are often used as a way for companies to attract investors or raise money, and their value can increase if the company's stock price goes up.

phase 1 medical

"Phase 1 dose-escalation trial of FHD-909 (LY4050784) advancing as planned"

Phase 1 is the first stage of testing a new drug or medical treatment in people, focused primarily on safety, how the body handles the product, and finding a tolerated dose. Think of it as a short, tightly controlled experiment with a small group to check for dangerous side effects before wider testing; for investors it is an early milestone that reduces some uncertainty but still carries high risk and potential for both big value changes and setbacks.

investigational new drug (ind) regulatory

"toward anticipated Investigational New Drug (INDs) filings"

An investigational new drug (IND) is a drug or biologic that is being tested but has not yet been approved for general use; it is the application and formal status that allows a company to begin human clinical trials under regulator oversight. Investors care because an IND marks the transition from lab work to human testing — like getting a permit to run real-world experiments — which creates important milestones, costs, timelines and regulatory risk that drive a development-stage company's value.

ind-enabling studies regulatory

"tracking to IND-enabling studies in 2026"

Ind-enabling studies are early research efforts that test whether a new drug or treatment is safe and effective enough to move forward in development. They are like preliminary tests to ensure a product works as intended before investing more resources into large-scale trials. For investors, these studies are important because successful results can signal potential progress toward bringing a new product to market, impacting its future value.

synthetic lethal medical

"Selectively blocking SMARCA2 activity is a promising synthetic lethal strategy"

Synthetic lethal describes a biological pairing where disabling either of two genes on its own is survivable, but disabling both at the same time kills the cell; think of two backup systems where knocking out one is fine, but breaking both causes failure. For investors, this concept underlies targeted cancer drugs that exploit a tumor’s unique weakness, offering the potential for highly effective, biomarker-driven therapies and clearer paths to patient selection, but also concentrated development and regulatory risk.

diffuse large b-cell lymphoma (dlbcl) medical

"EP300 lineage dependencies are established in diffuse large b-cell lymphoma (DLBCL)"

Diffuse large B‑cell lymphoma (DLBCL) is an aggressive cancer of the immune system in which a type of white blood cell grows quickly and forms tumors in lymph nodes and other tissues; think of it like a fast‑spreading weed in the body’s infection‑fighting system. It matters to investors because the disease’s incidence, treatment options, clinical trial results, and regulatory approvals can directly affect the revenues and valuations of drugmakers, hospitals, and diagnostic companies tied to cancer therapies.

multiple myeloma (mm) medical

"EP300 lineage dependencies are established in ... multiple myeloma (MM)"

A blood cancer in which antibody-producing cells (plasma cells) in the bone marrow grow uncontrollably, crowding out healthy cells and causing bone damage, anemia, infections and kidney problems. Investors watch it because treatments, diagnostics and trial results can drive large, sustained drug sales and stock moves — think of a chronic industrial defect that creates steady demand for repairs, novel therapies and long-term care services.

AI-generated analysis. Not financial advice.

Recently raised $50 million with BVF Partners, Deerfield Management, founding investor Flagship Pioneering and a leading biotech mutual fund in a transaction that will close January 13^th, 2026

Phase 1 dose-escalation trial of FHD-909 (LY4050784) advancing as planned, targeting SMARCA4 (BRG1)-mutant cancers with a focus on non-small cell lung cancer (NSCLC)

Selective CBP degrader program with potential in ER+ breast cancer on track to be IND-ready in 2026

Selective EP300 degrader program shows preclinical superior anti-tumor efficacy and tolerability over dual CBP/EP300; tracking to IND-enabling studies in 2026

Strong balance sheet with cash, cash equivalents, and marketable securities of $208.9 million*, including proceeds from the equity financing, which is anticipated to close on January 13, 2026, and allows for continued investment in the pipeline and extends cash into the first half of 2028

WATERTOWN, Mass., Jan. 09, 2026 (GLOBE NEWSWIRE) -- Foghorn^® Therapeutics Inc. (Nasdaq: FHTX), a clinical-stage biotechnology company pioneering a new class of medicines that treat serious diseases by correcting abnormal gene expression, today announced its strategic objectives for 2026.

“We are pleased to have raised $50 million in an equity financing, priced at a 30% premium to the closing stock price on January 9, 2026. As part of the financing, we issued premium-priced warrants with an exercise price of 2 and 3 times the issue price. This equity raise represents an important vote of confidence from key biotech investors in our vision and execution,” said Adrian Gottschalk, President and Chief Executive Officer of Foghorn. “We continue to execute across our first-in-class pipeline focused on developing new treatment options for cancers with significant unmet need. For FHD-909, our partnered program with Lilly, the Phase 1 dose-escalation trial is on track. The trial is enrolling patients with SMARCA4-mutated cancers, particularly those with NSCLC where prognosis is poor and worsens with each additional line of therapy. We are also making strong progress across our degrader portfolio as we advance our Selective CBP degrader, with promise in ER+ breast cancer, and our Selective EP300 degrader, with potential in hematologic malignancies, toward anticipated Investigational New Drug (INDs) filings. With unique programs across our partnered and proprietary pipeline, we look forward to providing updates during the coming year.”

*Unaudited and estimated.

Corporate Update

Strengthens Balance Sheet with Equity Financing to Advance Pipeline. On January 9, 2026, Foghorn entered into agreements with BVF Partners, Deerfield Management, founding investor Flagship Pioneering and a leading biotech mutual fund for the purchase and sale of 2,030,314 shares of its common stock at a purchase price of $6.71 per share and in lieu of common stock to certain investors, pre-funded warrants to purchase up to an aggregate of 5,421,250 shares of its common stock at a price of $6.7099 per pre-funded warrant, which represents the per share offering price for the common stock less the $0.0001 per share exercise price for each such pre-funded warrant as well as warrants to purchase up to 3,725,782 shares of common stock at an exercise price of $13.42 per share and up to 3,725,782 shares of common stock at an exercise price of $20.13 per share. The purchase price of the shares of common stock to be sold in the offering represents a premium of 30% to the last reported sale price of our common stock on the Nasdaq Global Market on January 9, 2026. (The offering is expected to close on or about January 13, 2026, subject to satisfaction of customary closing conditions). All of the shares of common stock in the offering are to be sold by Foghorn.

Program Overview and Upcoming Milestones

FHD-909 (LY4050784). FHD-909 is a first-in-class oral SMARCA2 selective inhibitor that has demonstrated in preclinical studies to have high selectivity over its closely related paralog SMARCA4, two proteins that are the catalytic engines across all forms of the BAF complex. Selectively blocking SMARCA2 activity is a promising synthetic lethal strategy intended to induce tumor death while sparing healthy cells. SMARCA4 is mutated in up to 10% of NSCLC alone and implicated in a significant number of solid tumors. Across lines of therapy, significant unmet needs remain for patients with SMARCA4 (BRG1)-mutant cancers with both poor response rates and short progression-free survival.

• Phase 1 trial on track. Enrollment in the first-in-human Phase 1 multi-center trial of FHD-909 is progressing well. The trial in patients with NSCLC as the primary target population is on track, following the dosing of the first patient in October 2024.
• Synergistic preclinical data of FHD-909 in combination with pembrolizumab and KRAS inhibitors. Preclinical data supports enhanced anti-tumor activity of FHD-909 in combination with standard-of-care (SoC) chemotherapies, anti-PD-1 pembrolizumab and several novel KRAS inhibitors in NSCLC animal models.
  • Pending successful Phase 1 dose escalation results, Foghorn and Lilly anticipate evaluating FHD-909 in combination studies in the front-line setting of NSCLC.
    
    

Ongoing strategic collaboration with Lilly. Foghorn is collaborating with Lilly to develop novel oncology medicines, including a 50/50 U.S. co-development and co-commercialization agreement for its selective SMARCA2 oncology program that includes both a selective inhibitor and a selective degrader, as well as an additional undisclosed oncology target. The collaboration also includes three discovery programs from Foghorn’s proprietary Gene Traffic Control^® platform.

Selective CBP degrader program. Foghorn's Selective CBP degrader selectively targets CBP, an acetyltransferase closely related to EP300. CBP lineage dependencies are established in several cancers, including breast cancer and there is also a synthetic relationship in EP300-mutated cancers, which include endometrial, cervical, ovarian, bladder, and colorectal cancer. Attempts to selectively drug CBP have been challenging due to the high level of similarity between the two proteins, while dual inhibition of CBP/EP300 has been associated with dose-limiting toxicities.

• CBP degrader program – IND-ready anticipated in 2026. In October 2025, preclinical data for Selective CBP degraders CBP-dependent cancers and ER+ breast cancer was presented during a Foghorn virtual investor event, which included:
  • Highly potent and selective lead candidate CBPd-171 in ongoing dose range finding toxicology studies
  • Anti-tumor activity in EP300 mutant solid tumors and in CBP-dependent cancers, including promising potential in ER+ breast cancer
  • No impact on platelet counts and spared megakaryocytes with CBPd-171
  • Long Acting Injectable (LAI) formulation optimized for subcutaneous injection weekly or every other week for convenient administration
    
    

Selective EP300 degrader program. Foghorn is developing a Selective EP300 degrader for the treatment of hematological malignancies and prostate cancer. Attempts to selectively drug EP300 have been challenging due to the high level of similarity between EP300 and CBP, while dual inhibition of CBP/EP300 has been associated with dose limiting toxicities. EP300 lineage dependencies are established in diffuse large b-cell lymphoma (DLBCL) and multiple myeloma (MM).

• EP300 degrader program – IND-enabling studies expected in 2026, with a focus in MM and DLBCL. In October 2025, efficacy and safety data of Selective EP300 degraders in preclinical models of hematological malignancies was presented during a Foghorn virtual investor event which included:
  • Broad anti-tumor activity in over 70% of all heme sub-lineages tested
  • VHL-based selective degrader shows impressive efficacy in MM without hematological toxicities including thrombocytopenia
  • EP300 degraders show full efficacy in IMiD-resistant MM cell lines
  • Tolerability profile with widespread potential for combinations
    
    

Selective ARID1B degrader program. Foghorn's Selective ARID1B degrader selectively targets and degrades ARID1B in ARID1A-mutated cancers. ARID1A is the most mutated subunit in the BAF complex and amongst the most mutated proteins in cancer. These mutations lead to a dependency on ARID1B in several types of cancer, including endometrial, gastric, gastroesophageal junction, bladder and NSCLC. Attempts to selectively drug ARID1B have been challenging because of the high degree of similarity between ARID1A and ARID1B and the fact that ARID1B has no enzymatic activity to target. ARID1B is a major synthetic lethal target implicated in up to 5% of all solid tumors.

• First-in-class Selective ARID1B degrader program advancing towards in vivo proof of concept in 2026. In October 2025, progress for the Selective ARID1B degrader was presented during a Foghorn virtual investor event which included:
  • Developed VHL and cereblon based bifunctional degraders with potential for oral delivery
  • Selective degradation of ARID1B achieved
  • Modulation of downstream target genes following ARID1B degradation
    
    

Strong Balance Sheet and Cash Runway.
As of January 13, 2026, the Company expects to have approximately $208.9 million (unaudited) in cash, cash equivalents, and marketable securities, inclusive of proceeds from the recent equity financing, allowing for continued investment in the pipeline and extending cash into the first half of 2028.

The securities described under Corporate Update are being offered by Foghorn pursuant to a shelf registration statement on Form S-3 declared effective by the Securities and Exchange Commission (“SEC”) on January 31, 2025. This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in this offering, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation, or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction. A prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and will be available on the SEC's website at www.sec.gov.

About Foghorn Therapeutics
Foghorn^® Therapeutics is discovering and developing a novel class of medicines targeting genetically determined dependencies within the chromatin regulatory system. Through its proprietary, scalable Gene Traffic Control^® platform, Foghorn is systematically studying, identifying, and validating potential drug targets within the chromatin regulatory system. The Company is developing multiple product candidates in oncology. Visit our website at www.foghorntx.com for more information on the Company, and follow us on X and LinkedIn.

Forward-Looking Statements
This press release contains “forward-looking statements.” Forward-looking statements include statements regarding the Company’s ongoing Phase 1 trial of FHD-909 in SMARCA4-mutated cancers, preclinical product candidates, expected timing of clinical data, expected cash runway, expected timing of regulatory filings, and research efforts and other statements identified by words such as “could,” “may,” “might,” “will,” “likely,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “projects” and similar references to future periods. Forward-looking statements are based on our current expectations and assumptions regarding capital market conditions, our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions, including risks relating to our clinical trials and other factors set forth under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the Securities and Exchange Commission. Any forward-looking statement made in this press release speaks only as of the date on which it is made.

Contact:
Karin Hellsvik, Foghorn Therapeutics Inc.
khellsvik@foghorntx.com

FAQ

What financing did Foghorn Therapeutics (FHTX) announce on January 10, 2026?

Foghorn announced a $50.0 million equity financing with institutional investors, expected to close on January 13, 2026.

How much cash does Foghorn (FHTX) expect after the January 2026 financing?

Foghorn expects approximately $208.9 million in cash, cash equivalents, and marketable securities inclusive of the financing.

What is the clinical status of FHD‑909 (FHTX) as of January 2026?

FHD‑909 is in a first‑in‑human Phase 1 multi‑center dose‑escalation trial enrolling patients with SMARCA4‑mutant NSCLC, and the trial is on track.

When are Foghorn's degrader programs expected to reach IND or IND‑enabling studies (FHTX)?

Selective CBP is anticipated to be IND‑ready in 2026; Selective EP300 and ARID1B are tracking to IND‑enabling or in‑vivo proof‑of‑concept in 2026.

What are the warrant and pre‑funded warrant terms in Foghorn's January 2026 offering (FHTX)?

The offering includes pre‑funded warrants for up to 5,421,250 shares at $6.7099 and warrants to purchase up to 3,725,782 shares at $13.42 and up to 3,725,782 shares at $20.13.