Foghorn Therapeutics Q3 collaboration revenue jumps on catch-up adjustment

Overview

• US biotechnology firm's Q3 collaboration revenue surged yr/yr on cumulative catch-up adjustment

• Company posted net income for Q3 versus a loss a year earlier

• Cash and equivalents of $156 mln provide runway into H2 2029

Outlook

• Company expects dose-range finding studies for IBD program to begin in Q4 2026

• Foghorn targets first-in-human trials for IBD program by end of 2027

• Company aims to file IND for EP300 degrader program in 2027

Result Drivers

• CATCH-UP ADJUSTMENT - Q3 collaboration revenue rose due to a $74.1 mln cumulative catch-up adjustment related to updated estimated future costs for discontinued programs

• LOWER R&D AND ADMIN COSTS - Research and development and general and administrative expenses declined yr/yr, mainly due to lower partnered program, personnel, professional, and facilities costs

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the biotechnology & medical research peer group is "buy"

• Wall Street's median 12-month price target for Foghorn Therapeutics Inc. is $5.00, about 167.4% above its November 6 closing price of $1.87

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)