Foghorn Therapeutics(US:FHTX)2026-03-11 20:11Financial Performance - The company has reported net losses of $74.3 million and $86.6 million for the years ended December 31, 2025 and 2024, respectively, with an accumulated deficit of $632.5 million as of December 31, 2025[379]. - The company expects to incur significant operating losses in the foreseeable future as it continues to support research and development activities[415]. - The company reported a net loss of $74.3 million for the year ended December 31, 2025, which contributed to cash used in operating activities[422]. Revenue and Collaboration - The company has not generated any revenue from product sales to date and does not expect to do so in the near future[383]. - The company received an upfront payment of $300.0 million from Eli Lilly as part of the collaboration agreement, along with an equity investment of $80.0 million[370]. - The collaboration with Lilly includes a 50/50 profit and expense share for U.S. programs and tiered royalties on ex-U.S. sales starting in the low double-digit range[386]. - Collaboration revenue increased to $30.9 million for the year ended December 31, 2025, up from $22.6 million in 2024, reflecting continued advancement of programs under the Lilly Collaboration Agreement[409]. Expenses and Cost Management - The company expects significant increases in operating expenses as it continues to develop its product candidates and expand its research capabilities[380]. - Total operating expenses decreased to $117.3 million in 2025 from $125.3 million in 2024, primarily due to a reduction in research and development expenses[408]. - Research and development expenses were $85.5 million for the year ended December 31, 2025, down from $94.5 million in 2024, attributed to the discontinuation of certain clinical trials and decreased facility costs[410]. - General and administrative expenses decreased to $27.6 million in 2025 from $28.4 million in 2024, mainly due to reduced facility and IT-related expenses[411]. Cash Flow and Financing - The company reported net cash used in operating activities of $86.1 million for the year ended December 31, 2025, compared to $100.4 million for 2024[421]. - The company had cash, cash equivalents, and marketable securities totaling $158.9 million as of December 31, 2025[417]. - Net cash provided by investing activities was $112.0 million for the year ended December 31, 2025, primarily due to $243.3 million of marketable securities maturing[424]. - The company raised approximately $50.0 million from the January 2026 offering before expenses, selling 2,030,314 shares of Common Stock and Pre-Funded Warrants[420]. - The company provided net cash from financing activities of $1.0 million for the year ended December 31, 2025, primarily from the sale of common stock under its ATM Facility[426]. - The company may need to seek additional financing sooner than expected if capital resources are depleted, which could negatively impact its financial condition[429]. Deferred Revenue and Impairments - The company has recognized total deferred revenue of $337.8 million related to the Lilly Collaboration Agreement, with $249.2 million remaining on the balance sheet as of December 31, 2025[390]. - The company experienced a decrease in deferred revenue of $30.9 million for the year ended December 31, 2025, impacting cash flows from operating activities[422]. - A non-cash impairment of long-lived assets charge of $5.9 million was recorded in 2025, related to the abandonment of leasehold improvements[413]. Future Outlook and Development - The company is currently working on more than seven programs, with one clinical-stage drug candidate in Phase 1 development, targeting over 500,000 cancer patients[367]. - The company anticipates that its research and development expenses may increase unpredictably due to geopolitical and economic factors[395]. - The company expects expenses to increase significantly due to ongoing clinical activities, including the Phase 1 clinical trial of FHD-909 partnered with Lilly[428]. - The company anticipates that its current cash and marketable securities will be sufficient to fund operations for at least twelve months[428].