Foghorn Therapeutics Inc. (FHTX): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of Foghorn Therapeutics Inc. (FHTX) to see how this precision oncology player translates its science into dollars, and frankly, the story is crystal clear as of late 2025. It all hinges on their proprietary Gene Traffic Control® platform, which is currently validated through the massive co-development deal with Eli Lilly, bringing in $8.2 million in collaboration revenue in Q3 2025 alone. This isn't just academic research; it's a calculated financial play on correcting abnormal gene expression. See the full breakdown below to map out their key resources, like their $180.3 million cash position, against the heavy R&D costs driving their value proposition.

Foghorn Therapeutics Inc. (FHTX) - Canvas Business Model: Key Partnerships

You're looking at how Foghorn Therapeutics Inc. structures its external relationships to drive its pipeline forward, especially given the capital-intensive nature of drug development. The partnerships are critical for sharing risk, accessing expertise, and funding late-stage clinical work. The collaboration with Eli Lilly and Company is definitely the cornerstone here.

The strategic alliance with Eli Lilly and Company centers on co-development and co-commercialization efforts, which provides significant financial backing for Foghorn Therapeutics Inc.'s most advanced programs. This structure is designed to share the burden of taking a drug from the clinic through to the market.

The core of this alliance is the U.S. 50/50 U.S. co-development and co-commercialization agreement covering the selective SMARCA2 oncology program. This program encompasses both a selective inhibitor, FHD-909, and a selective degrader, plus an additional undisclosed oncology target. Also included are three discovery programs stemming from Foghorn Therapeutics Inc.'s proprietary Gene Traffic Control® platform.

Here's a snapshot of the financial impact and program focus related to the Lilly collaboration as of late 2025:

The clinical execution for the lead asset, FHD-909, is managed through a Phase 1 multi-center trial. While specific CROs aren't named, the need for external support in trials is reflected in the R&D spend. Research and Development Expenses for the three months ended September 30, 2025, were $20.0 million, a decrease from $24.7 million the prior year, which was partially offset by an increase in Lilly-partnered program costs.

Foghorn Therapeutics Inc. also relies on external partners for manufacturing the drug substance, though specific third-party manufacturers aren't detailed in recent public updates. The company is advancing several programs that rely on its internal platform, which often requires external manufacturing capacity once candidates move past early development.

Beyond the Lilly deal, the internal pipeline progression, which often involves academic and clinical research institutions for trials and CROs for execution, shows several key milestones:

• Selective CBP degrader program: IND-ready anticipated in 2026.
• Selective ARID1B degrader program: Advancing towards in vivo proof of concept in 2026.
• ARID1B target prevalence: Implicated in up to 5% of all solid tumors.
• Selective EP300 degrader program: Entered non-GLP toxicology studies in Q4 2025.
• FHD-286: Listed as an emerging therapy in the Relapsed/Refractory Acute Myeloid Leukemia (R/R AML) space.

The company's overall financial health, supported by these collaborations, shows a cash position of $180.3 million as of September 30, 2025, providing a cash runway extending into 2028. That runway is key for funding the external costs associated with trials and manufacturing.

Foghorn Therapeutics Inc. (FHTX) - Canvas Business Model: Key Activities

Advancing the proprietary Gene Traffic Control® platform is central to Foghorn Therapeutics Inc.'s operations. This platform gives the company an integrated, mechanistic understanding of how the components of the chromatin regulatory system interact, enabling the identification, validation, and potential drugging of targets within that system.

Conducting the Phase 1 clinical trial for FHD-909 is a primary focus. This first-in-class oral selective SMARCA2 inhibitor targets SMARCA4 (BRG1) mutated cancers, with non-small cell lung cancer (NSCLC) as the primary target population. The first patient was dosed in October 2024 in the ongoing first-in-human Phase 1a/b open-label, multicenter trial, and enrollment is progressing well, keeping the study on track.

Preclinical development of selective degraders continues to expand the pipeline. The company is heavily invested in these next-generation assets:

• Selective CBP degrader program: Lead candidate CBPd-171 is advancing to dose range finding toxicology studies in Q4 2025, with an Investigational New Drug (IND)-ready anticipation set for 2026.
• Selective EP300 degrader program: IND-enabling studies are expected in 2026.
• Selective ARID1B degrader program: This program, targeting a synthetic lethal target implicated in up to 5% of all solid tumors, is advancing towards in vivo proof of concept in 2026.

Managing the strategic collaboration with Lilly involves co-development and co-commercialization efforts. This partnership covers Foghorn Therapeutics Inc.'s selective SMARCA2 oncology program, which includes both a selective inhibitor and a selective degrader, plus three additional discovery programs using the Gene Traffic Control® platform.

The financial output from this collaboration is a key operational metric. Here's a look at the recent collaboration revenue recognized by Foghorn Therapeutics Inc. for the three quarters ending in 2025:

The Lilly agreement structure allows for significant upside, with Foghorn Therapeutics Inc. eligible to receive up to a total of $1.3 billion in potential development and commercialization milestones. For U.S. economics on the SMARCA2 program, the split is 50/50. The initial deal included an upfront cash consideration of $300 million and an equity investment by Lilly of $80 million at $20 per share.

Securing and defending intellectual property (IP) is an ongoing activity underpinning the platform's value. The company's focus on chromatin biology and the Gene Traffic Control® platform is the basis for its pipeline. The net loss for the third quarter ended September 30, 2025, was $15.8 million, an improvement from the $19.1 million loss in the same period last year. Total assets were reported at $205 million as of September 30, 2025.

The company's R&D expenses for the three months ended September 30, 2025, were $20.0 million, down from $24.7 million for the same period in 2024, driven by reduced research and development costs.

Foghorn Therapeutics Inc. (FHTX) - Canvas Business Model: Key Resources

When you look at the foundation of Foghorn Therapeutics Inc., you see a few critical assets that really drive their value proposition right now, late in 2025. These aren't just abstract concepts; they are tangible things-technology, cash, and people-that keep the engine running.

The most fundamental resource is their Proprietary Gene Traffic Control® platform technology. Honestly, this is their engine for discovery. It's a scalable system they use to systematically study, identify, and validate potential drug targets specifically within the chromatin regulatory system. This platform is what allows them to generate their pipeline of candidates.

Financially, you need to know the balance sheet strength. As of September 30, 2025, Foghorn Therapeutics Inc. reported $180.3 million in cash, cash equivalents, and marketable securities. That number is important because it translates directly into operational time; based on their current burn rate, this provides a cash runway extending into 2028.

The pipeline itself represents a massive resource, especially the clinical-stage asset. Here's a quick look at the key programs that are currently consuming resources and generating potential upside:

• FHD-909 (SMARCA2 inhibitor) in Phase 1 dose escalation trial.
• Selective CBP degrader program, IND-ready anticipated in 2026.
• Selective EP300 degrader program, IND-enabling studies expected in 2026.
• Selective ARID1B degrader advancing towards in vivo proof-of-concept in 2026.

The development of these assets relies heavily on their people. Foghorn Therapeutics Inc. possesses highly specialized scientific and clinical development talent. You can't run a Phase 1 trial for a first-in-class SMARCA2 inhibitor without deep expertise in chromatin biology and targeted protein degradation. This human capital is definitely a non-fungible asset.

To protect this science, they have an extensive patent portfolio covering chromatin regulatory targets. This intellectual property is what locks in their competitive advantage around their core technology and specific drug candidates. For instance, their lead asset, FHD-909, targets SMARCA2, which is critical because SMARCA4 is mutated in up to 10% of Non-Small Cell Lung Cancer (NSCLC) alone, and these tumors rely on SMARCA2 for survival.

To map out the tangible assets driving the pipeline, consider this breakdown of their lead candidates as of late 2025:

The collaboration with Lilly on FHD-909 is also a key resource, providing strategic alignment and financial support for that specific program. You've got the platform, the cash runway, and the pipeline assets all underpinned by specialized people and IP protection. Finance: draft 13-week cash view by Friday.

Foghorn Therapeutics Inc. (FHTX) - Canvas Business Model: Value Propositions

You're looking at the core value Foghorn Therapeutics Inc. delivers, which is rooted in pioneering a new class of medicines by correcting abnormal gene expression using their Gene Traffic Control® platform. This approach targets genetically determined dependencies in cancer, which is precision therapy at its best.

The lead asset, FHD-909, is your first-in-class oral selective SMARCA2 inhibitor, currently enrolling and dosing patients in a Phase 1 trial for SMARCA4 mutated cancers. For context on the opportunity, SMARCA4 is mutated in up to 10% of non-small cell lung cancer (NSCLC) cases alone, where patients often have a worse prognosis.

The value proposition extends deeply into their degrader pipeline, which leverages protein degradation for novel oncology targets. Specifically, the Selective ARID1B degrader program holds significant potential, as ARID1B is a major synthetic lethal target implicated in up to 5% of all solid tumors. This program is advancing towards in vivo proof of concept in 2026. Anyway, the pipeline momentum is strong:

• Selective CBP degrader is on track for non-GLP toxicology studies in Q4 2025, targeting Investigational New Drug (IND)-ready status in 2026.
• Selective EP300 degrader has IND-enabling studies expected in 2026.

To back this development work, Foghorn Therapeutics maintained a solid financial footing as of late 2025. Here's the quick math on the balance sheet from the Q3 2025 report:

That Q3 collaboration revenue, primarily from the Lilly Collaboration Agreement, shows external validation of their platform. Still, the company is operating at a net loss, which is expected given the stage of development. For instance, the Q1 2025 cash position was reported at $220.6 million as of March 31, 2025, showing the recent cash balance fluctuates with operational burn and financing activities.

The value is in the precision of the science, targeting dependencies like SMARCA4 mutations and ARID1B loss. For example, preclinical data supports combining FHD-909 with pembrolizumab and KRAS inhibitors, which is a clear value-add for patients with challenging NSCLC profiles. Finance: draft 13-week cash view by Friday.

Foghorn Therapeutics Inc. (FHTX) - Canvas Business Model: Customer Relationships

You're managing a clinical-stage biotech, so your relationships aren't with typical consumers; they are highly specialized, built on scientific credibility and financial transparency. Here's how Foghorn Therapeutics Inc. (FHTX) manages those critical external connections as of late 2025.

High-touch, strategic management of the Lilly collaboration

The relationship with Eli Lilly and Company is central, structured as a strategic collaboration for novel oncology medicines. This includes a U.S. 50/50 co-development and co-commercialization agreement for the selective SMARCA2 oncology program, which covers both a selective inhibitor and a selective degrader, alongside an additional undisclosed oncology target. Plus, the deal encompasses three discovery programs stemming from Foghorn Therapeutics Inc.'s proprietary Gene Traffic Control® platform. The tangible success of this relationship is reflected in the revenue figures; Collaboration Revenue for the three months ended June 30, 2025, reached $7.6 million, an increase from $6.9 million for the same period in 2024. This trend continued into the third quarter, with Collaboration Revenue hitting $8.2 million for the three months ended September 30, 2025, up from $7.8 million year-over-year. The advancement of FHD-909, the SMARCA2 program, in its Phase 1 dose escalation trial, which targets SMARCA4-mutated cancers with NSCLC as the primary population, is a key relationship milestone.

Close engagement with clinical investigators and key opinion leaders (KOLs)

Engaging clinical investigators is tied directly to pipeline progress, especially for the lead asset, FHD-909. The Phase 1 trial is actively enrolling, and management is enthusiastic about developing FHD-909 as a front-line therapy in NSCLC, which requires close coordination with the principal investigators running the study sites. The company is also advancing its wholly-owned programs, like the Selective CBP degrader, which entered non-GLP toxicology studies in Q4 2025, signaling the need to engage with KOLs who specialize in EP300-mutant cancers and ER+ breast cancer ahead of a targeted IND in 2026. The Selective ARID1B degrader is also advancing towards in vivo proof of concept in 2026, another area requiring expert input.

Scientific communication through conferences (e.g., AACR) and publications

Scientific communication is the bedrock of credibility with KOLs and potential future partners. Foghorn Therapeutics Inc. maintained a very active schedule of presenting data and engaging in one-on-one meetings throughout 2025. They presented preclinical combination data for FHD-909 with pembrolizumab and KRAS inhibitors at the American Association for Cancer Research (AACR) Annual Meeting in April 2025. Also in April 2025, they presented poster data at AACR showing synergistic combination activity for Selective CBP degraders. The company followed this up by announcing updates for its Selective ARID1B, Selective CBP, and Selective EP300 Degrader Programs on October 30, 2025. Visibility was maintained through participation in multiple major investor/healthcare conferences:

• Citi's 2025 Biopharma Back to School Summit (September 2025).
• 2025 Wells Fargo Healthcare Conference (September 2025).
• Morgan Stanley's 23rd Annual Global Healthcare Conference (September 2025).
• Guggenheim Second Annual Healthcare Innovation Conference (November 10, 2025).
• Stifel 2025 Healthcare Conference (November 13, 2025).
• Jefferies 2025 London Healthcare Conference (November 19, 2025).
• 8th Annual Evercore Healthcare Conference (Scheduled for December 4, 2025).

The CEO, Adrian Gottschalk, presented at the November conferences, showing a commitment from the top leadership to these external engagements. Here's a quick look at the late 2025 engagement cadence:

Investor relations and public company reporting (defintely a key focus)

Investor relations is a constant, high-priority relationship, especially for a clinical-stage company. Foghorn Therapeutics Inc. provided its Third Quarter 2025 Financial and Corporate Update on November 5, 2025, following its 10-Q filing for the quarter ended September 30, 2025. This update highlighted a strong balance sheet with $180.3 million in cash, cash equivalents, and marketable securities as of that date, supporting a projected cash runway into 2028. The company formally communicated its investor engagement plan by filing an 8-K on November 7, 2025, which furnished an Investor Presentation dated November 2025 intended for use in investor meetings. Market reaction shows the sensitivity of this relationship; on the day the November conference participation was announced, the stock declined 6.65%, removing approximately $17 million from the valuation, bringing the market cap to $238 million at that time, with a closing price of $3.93. Still, on a different day, the stock quote showed a price of $4.29. The company also managed internal transitions impacting investor confidence, announcing the departure of CFO Kristian Humer, effective November 14, 2025.

Finance: draft 13-week cash view by Friday.

Foghorn Therapeutics Inc. (FHTX) - Canvas Business Model: Channels

You're looking at how Foghorn Therapeutics Inc. gets its value proposition-novel precision therapies-out to the world, which is heavily reliant on strategic external relationships and regulatory milestones.

Direct licensing and collaboration agreements with pharmaceutical partners (Lilly).

The collaboration with Eli Lilly is a primary channel for both development and commercialization reach, especially for the lead asset. This agreement covers a U.S. 50/50 co-development and co-commercialization structure for the selective SMARCA2 oncology program, which includes both the selective inhibitor (FHD-909) and a selective degrader. The partnership also extends to a selective degrader and an additional undisclosed oncology target, plus three discovery programs leveraging the Gene Traffic Control® platform. This channel directly translates into revenue recognition.

Collaboration revenue for the three months ended June 30, 2025, was reported as $7.6 million. This was an increase from $6.9 million for the same period in 2024, driven by the continued advancement of programs under the Lilly Collaboration Agreement. The partnership provides necessary strategic and financial resources to develop FHD-909.

Clinical trial sites and investigators for drug delivery to patients.

Patient access channels are centered on the clinical trial infrastructure. The Phase 1 dose escalation trial for FHD-909, targeting SMARCA4-mutated cancers with non-small cell lung cancer (NSCLC) as the primary focus, began enrolling patients in October 2024. This trial structure is the direct mechanism for delivering the investigational drug to the initial patient population. The company is also advancing wholly-owned selective degrader programs, which will require establishing new site networks as they move toward IND-enabling studies.

The current focus is on the enrollment and dosing within the ongoing Phase 1 trial for FHD-909.

• FHD-909 Phase 1 trial first patient dosed: October 2024.
• Primary target indication for FHD-909: SMARCA4-mutated NSCLC.
• Selective CBP degrader targeting IND in 2026.
• Selective EP300 degrader targeting IND in 2026.

Scientific presentations and publications to reach the medical community.

Reaching the scientific and medical community is crucial for establishing credibility and informing future prescribing patterns. This is done through high-profile conference presentations and data publications. The company actively presented data at major medical meetings throughout 2025.

Key dissemination events included:

• Preclinical data for FHD-909 combination with pembrolizumab and KRAS inhibitors presented at the 2025 American Association for Cancer Research (AACR) Annual Meeting (April 25-30, 2025).
• Preclinical data for the Selective CBP degrader program presented as a poster at the AACR Annual Meeting in April 2025.
• Updates for the Selective ARID1B, Selective CBP, and Selective EP300 degrader programs were announced on October 30, 2025.
• CEO Adrian Gottschalk presented at the Guggenheim Second Annual Healthcare Innovation Conference (November 10, 2025, 11:00 a.m. ET), the Stifel 2025 Healthcare Conference (November 13, 2025, 4:00 p.m. ET), and the Jefferies 2025 London Healthcare Conference (November 19, 2025, 10:30 a.m. GMT).

Regulatory submissions (e.g., INDs) to the FDA and other agencies.

Regulatory milestones serve as critical gating channels, allowing the transition from preclinical work to human testing and eventual market access. The data generated from clinical trials and presented at scientific forums directly supports these submissions. For the wholly-owned pipeline assets, the IND (Investigational New Drug) submission target dates are the key channel markers.

The Selective CBP degrader program and the Selective EP300 degrader program are both targeted to be IND-ready in 2026. FHD-909, the Lilly-partnered asset, is already in a Phase 1 trial, which implies a prior successful IND submission. Furthermore, FHD-909 is noted as being 'under review by the U.S. Food and Drug Administration (FDA)' for its indication as a BRM (SMARCA2) selective inhibitor.

Here's a quick look at the financial and pipeline milestones that underpin the channel execution as of late 2025:

Finance: draft 13-week cash view by Friday.

Foghorn Therapeutics Inc. (FHTX) - Canvas Business Model: Customer Segments

The customer segments for Foghorn Therapeutics Inc. (FHTX) are defined by specific genetic profiles in oncology, as well as the strategic partners required to bring these precision medicines to market.

Large pharmaceutical companies seeking novel oncology assets (Lilly) represent a critical segment, evidenced by the ongoing strategic collaboration. This alliance includes a U.S. 50/50 U.S. co-development and co-commercialization agreement for the selective SMARCA2 oncology program, which covers both an inhibitor and a degrader, along with an additional undisclosed oncology target and three discovery programs. Collaboration revenue for the three months ended September 30, 2025, was $8.2 million, an increase from $7.8 million for the same period in 2024, driven by the advancement of programs under this agreement.

The patient population segment is highly specialized, focusing on genetically-defined cancers:

• Patients with SMARCA4-mutated cancers, primarily Non-Small Cell Lung Cancer (NSCLC).
• Patients with hematologic malignancies and solid tumors driven by CBP/EP300/ARID1B mutations.

The target market size for the lead candidate FHD-909 is significant, as the SMARCA4 mutation is present in up to 10% of NSCLC cases alone. The global non-small lung carcinoma market is projected to reach $21.51 billion by the end of 2033. Furthermore, the Selective ARID1B degrader program targets a synthetic lethal dependency implicated in up to 5% of all solid tumors.

The clinical development progress directly impacts the perceived size and value of these patient segments. For instance, preclinical studies showed the Selective EP300 degrader had broad anti-tumor activity across over 70% of all heme sub-lineages tested.

The final segment comprises the treating specialists who manage these rare or genetically-defined patient subsets:

• Oncologists and hematologists treating these specific, genetically-defined cancers.

The financial health supporting the pursuit of these segments is robust as of late 2025. As of September 30, 2025, Foghorn Therapeutics Inc. reported $180.3 million in cash, cash equivalents, and marketable securities, providing a cash runway into 2028. The net loss for the third quarter of 2025 was $15.8 million.

Here's a look at the key metrics tied to these customer segments as of the third quarter of 2025:

Foghorn Therapeutics Inc. (FHTX) - Canvas Business Model: Cost Structure

You're looking at the core spending engine for Foghorn Therapeutics Inc. (FHTX) as of late 2025, which is heavily weighted toward discovery and clinical advancement. For a clinical-stage biotech, the cost structure is almost entirely defined by its pipeline investment.

The single largest cost driver is definitely Heavy Research and Development (R&D) expenses. This spending fuels the proprietary Gene Traffic Control platform and the progression of its novel degrader programs. For the third quarter ending September 30, 2025, R&D expenses were reported at $20.0 million. This focus on science is non-negotiable for a company pioneering a new class of medicines.

Total Operating Expenses for Q3 2025 were $26.7 million. This figure clearly shows where the bulk of the cash is going, and we can see the direct contribution from the two main operational buckets: R&D and G&A. Honestly, the R&D spend dwarfs the administrative overhead.

Here's the quick math for the Q3 2025 operational spend:

The General and Administrative (G&A) expenses, which cover the necessary corporate functions, were $6.7 million for the three months ended September 30, 2025. This was actually a slight improvement, down from $7.0 million in the same period last year, primarily due to lower facilities and IT related expenses. That's lean management for a company running this level of science.

A significant portion of that R&D outlay is dedicated to specific programs, like the ongoing clinical trials (FHD-909) and preclinical studies for their pipeline candidates. For instance, FHD-909, their selective SMARCA4 (BRG1) inhibitor, is in a Phase 1 dose escalation trial, which requires substantial clinical site management and monitoring costs. Furthermore, the company is advancing its Selective CBP degrader program into non-GLP toxicology studies in Q4 2025, another major cost center.

The costs for the specialized scientific workforce are embedded within the R&D expenses, representing Personnel-related costs. While the exact figure isn't broken out separately for Q3 2025, we know from prior periods that decreases in personnel-related costs contributed to R&D expense reductions in earlier quarters of 2025. You need top-tier talent to run a Gene Traffic Control platform, so these salaries and benefits are a fixed, high-value cost.

The key areas driving the R&D spend include:

• Advancing FHD-909 in the Phase 1 dose escalation trial.
• Funding non-GLP toxicology studies for the Selective CBP degrader.
• Supporting IND-enabling studies expected in 2026 for the Selective EP300 degrader.
• Moving the Selective ARID1B degrader towards in vivo proof of concept in 2026.

To be fair, much of the high R&D spend is offset by non-dilutive funding, such as the collaboration revenue, which was $8.2 million in Q3 2025, largely from the Lilly Collaboration Agreement. Finance: draft 13-week cash view by Friday.

Foghorn Therapeutics Inc. (FHTX) - Canvas Business Model: Revenue Streams

You're looking at how Foghorn Therapeutics Inc. actually brings in cash right now, which is heavily weighted on its strategic alliances. The primary engine for current revenue is the collaboration revenue stemming from its strategic partnerships, with the one with Lilly being the most significant driver. For the third quarter ending September 30, 2025, the collaboration revenue came in at $8.2 million.

That quarterly figure rolls up into the bigger picture. As of September 30, 2025, the trailing twelve-month revenue for Foghorn Therapeutics Inc. stood at $24.52 million. This revenue stream is built on the foundation of that Lilly agreement, which covers co-development and co-commercialization for programs like the selective SMARCA2 oncology program, plus other discovery targets. To be fair, this is the current recognized revenue; the real upside in this model comes from the future potential.

The structure of these deals means you should be watching for two other key revenue components, even if they don't hit the income statement every quarter. These are the milestone payments and royalties from partnered programs as they advance through clinical and regulatory hurdles. Also, remember the initial structure of the Lilly deal, which provided a significant capital injection when it started. Here's a quick look at that initial partnership funding:

• Upfront payment received from Lilly: $300 million
• Equity investment from Lilly: $80 million

This upfront and equity component is critical because it helps fund the ongoing research and development expenses while waiting for milestone achievements. It shows how the partnership is structured to support Foghorn Therapeutics Inc.'s operations beyond just quarterly earned revenue.

Here's a snapshot of the most recent revenue performance metrics you need to track: