Foghorn Therapeutics — Third Quarter 2026 Earnings Summary

Financial Performance:

• Collaboration revenue was $83.5 million for the three months ended September 30, 2026, compared to $8.2 million for the same period in 2025, representing a $75.4 million increase.
• The revenue increase was driven by a $74.1 million cumulative catch-up adjustment related to updated estimated future costs for the decision not to advance FHD-909 and the SMARCA2 selective degrader.
• Research and development expenses were $18.8 million for the three months ended September 30, 2026, a $1.2 million decrease from $20.0 million in the prior year period, attributed to lower Lilly-partnered program costs, facilities, IT, and personnel expenses, partially offset by increased early development and external costs.
• General and administrative expenses were $5.8 million for the three months ended September 30, 2026, a $0.9 million decrease from $6.7 million in the prior year period, due to lower personnel, professional, consulting, facilities, and IT costs.
• Restructuring costs of $2.3 million were recorded for the three months ended September 30, 2026, compared to zero in the prior year.
• Net income was $58.2 million for the three months ended September 30, 2026, compared to a net loss of $15.8 million in the prior year period.
• Cash, cash equivalents, and marketable securities totaled $156.2 million as of September 30, 2026, down from $158.9 million as of December 31, 2025.
• Deferred revenue decreased to $146.3 million as of September 30, 2026, from $249.2 million as of December 31, 2025.
• Total stockholders' deficit improved to $(14.1) million as of September 30, 2026, compared to $(108.5) million as of December 31, 2025.
• Net income per share was $0.81 (basic) and $0.80 (diluted) for the three months ended September 30, 2026, compared to a loss per share of $(0.25) in the prior year.

Guidance and Future Outlook:

• First-in-human trials for the novel oral small molecule in inflammatory bowel disease (IBD) are targeted for the end of 2027.
• The Selective EP300 degrader program is tracking to an Investigational New Drug (IND) filing in 2027.
• Dose-range finding studies for the IBD program are expected to begin in the fourth quarter of 2026.
• The company projects a cash runway extending into the second half of 2029.

Business Segments and Product Lines:

• Novel oral I&I program: Preclinical data show robust suppression of disease activity in T-cell transfer colitis and IL-10 knock-out models, with efficacy comparable to an anti-IL-12/23p40 antibody positive control.
• Selective EP300 degrader program: Preclinical data indicate superior anti-tumor activity with complete responses compared to the clinical benchmark dual CBP/EP300 inhibitor inobrodib in multiple myeloma models. The program demonstrated superior safety regarding body weight loss and platelet counts, and achieved tumor regression in a multiple myeloma xenograft model of acquired pomalidomide resistance.
• Endoplasmic Reticulum Induced Proximity (ERIP): The company is advancing a novel small-molecule approach to degrade secreted and transmembrane proteins before they reach the cell surface, aiming for antibody-like efficacy through small molecules.
• The company decided not to advance FHD-909 and the SMARCA2 selective degrader programs.

Management Commentary and Tone:

• Adrian Gottschalk, President and CEO, stated the company is "well positioned to deliver on this strategy" given the cash runway into the second half of 2029.
• Management emphasized a focus on advancing the wholly owned portfolio, including the IBD program and the EP300 degrader.
• The tone reflects confidence in the novel induced-proximity approach to address high-value targets in oncology and immunology.

Other Key Points:

• The company is a biotechnology firm pioneering a new class of medicines against challenging targets in oncology and immunology & inflammation using oral small molecules, targeted protein degradation, and induced proximity.
• The press release was issued in conjunction with the Company's 10-Q filing for the third quarter ended September 30, 2026.
• The company maintains a Nasdaq ticker symbol of FHTX.