Foghorn Therapeutics Raises Approximately $110 Million Through Registered Direct Offering to Advance Pipeline
Rhea-AI Summary
Foghorn Therapeutics has successfully closed a registered direct offering, raising approximately $110 million. This funding will bolster the company’s platform and advance its diverse pipeline of treatments for diseases, especially in oncology. The offering, which includes new and existing investors like BVF Partners and Flagship Pioneering, strengthens Foghorn's balance sheet, extending its cash runway into 2027. With $310 million in cash, cash equivalents, and short-term investments, the company is well-positioned for upcoming data readouts and clinical milestones. The offering priced 12,743,039 common shares at $5.51 each, and pre-funded warrants to buy 7,220,794 shares at $5.5099 each.
Positive
- Raised $110 million through direct offering.
- Extended cash runway into 2027 with $310 million in cash, cash equivalents, and short-term investments.
- New and existing reputable investors participated, enhancing credibility.
- Funds will support multiple data readouts and clinical milestones.
Negative
- Potential dilution from issuing 12,743,039 new shares and pre-funded warrants for 7,220,794 shares.
- Stock offering price of $5.51 per share could imply lower market valuation.
News Market Reaction – FHTX
On the day this news was published, FHTX declined 3.38%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Positions company to further leverage strength of platform and advance programs through multiple data readouts and clinical value inflection points
Strengthens balance sheet with cash, cash equivalents and short-term investments of
CAMBRIDGE, Mass., May 22, 2024 (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 the closing of its previously announced registered direct offering of common stock and of pre-funded warrants, with gross proceeds of the offering totaling approximately
The offering includes new investors BVF Partners, Deerfield Management and other leading healthcare specialist investors as well as other new and previous investors, including founding investor Flagship Pioneering. Jefferies, TD Cowen and Evercore ISI acted as joint book-running managers for the offering.
“We are pleased with the continued support from existing long-term investors and the quality of the new investors as we further advance our pipeline and our programs with the goal of delivering meaningful therapeutics to patients,” said Adrian Gottschalk, President and Chief Executive Officer of Foghorn. “This financing allows us to advance our programs through multiple data readouts and clinical value inflection points as we continue to develop medicines for patients and create value for shareholders. It supports our already strong balance sheet and extends our runway into 2027.”
The Company issued 12,743,039 shares of its common stock at a public offering price of
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 (formerly Twitter) and LinkedIn.
Forward-Looking Statements
This press release contains “forward-looking statements.” Forward-looking statements include statements regarding the Company’s cash runway, the Company’s clinical trials, including its ongoing Phase 1 study of FHD-286 in combination with decitabine or low-dose cytarabine (LDAC) in relapsed and/or refractory AML patients, pre-clinical product candidates, including the planned Phase 1 study of FHD-909 and our Selective CBP degrader program, expected timing of clinical data, 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, 2023, 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.
Contacts:
Greg Dearborn, Foghorn Therapeutics Inc. (Investors)
gdearborn@foghorntx.com
Karin Hellsvik, Foghorn Therapeutics Inc. (Investors & Media)
khellsvik@foghorntx.com
Adam Silverstein, ScientPR (Media)
adam@scientpr.com
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