Foghorn Therapeutics Secures $110 Million to Advance Pipeline

Foghorn® Therapeutics Inc. (Nasdaq: FHTX), a biotechnology company at the clinical stage, is focusing on new medications that correct abnormal gene expression to treat serious diseases. The company has recently announced the successful closure of its previously publicized registered direct offering. This offering, which included common stock and pre-funded warrants, has raised a gross amount of approximately $110 million. These funds will significantly advance Foghorn's Gene Traffic Control® platform and its robust pipeline, primarily targeting oncology, which has the potential to offer transformative treatments for a wide array of diseases.

The recent offering attracted new investments from key healthcare investors such as BVF Partners and Deerfield Management, along with continued support from existing investors including Flagship Pioneering. The joint book-running managers for this offering were Jefferies, TD Cowen, and Evercore ISI.

Adrian Gottschalk, the President and CEO of Foghorn, expressed gratitude for the ongoing support from both existing and new investors. He emphasized that this financial boost will empower the company to progress its pipeline and programs, aiming to deliver impactful therapies to patients. Gottschalk highlighted that the financing will enable Foghorn to achieve multiple data readouts and hit clinical value inflection points, ultimately creating value for both patients and shareholders. Additionally, this funding strengthens the company’s balance sheet, extending its financial runway into 2027.

The specifics of the offering included the issuance of 12,743,039 shares of common stock at a public price of $5.51 per share. Moreover, certain investors opted for pre-funded warrants instead of common stock, allowing them to acquire up to 7,220,794 shares of common stock at a price of $5.5099 per warrant, which is just below the per-share offering price for the common stock minus the $0.0001 per share exercise price for each warrant.

Foghorn Therapeutics is dedicated to discovering and developing unique medications that target genetic dependencies within the chromatin regulatory system. Their scalable Gene Traffic Control® platform enables systematic study, identification, and validation of potential drug targets within this system. The company's primary focus is on developing multiple oncology product candidates. 

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