Citizens JMP reiterates Foghorn stock with $9 target

Published 15/05/2025, 10:02
Citizens JMP reiterates Foghorn stock with $9 target

On Thursday, Citizens JMP maintained a positive stance on Foghorn Therapeutics (NASDAQ:FHTX), reaffirming a Market Outperform rating and a $9.00 price target. The biotechnology company, which is currently developing a novel cancer therapy known as FHD-909, has attracted attention due to its collaboration with pharmaceutical giant Eli Lilly (NYSE:LLY). According to InvestingPro data, analyst targets for FHTX range from $4 to $14, with the stock currently trading at $4.11, suggesting potential upside. The company’s market capitalization stands at $229 million, with its shares down approximately 23% over the past year.

Foghorn Therapeutics is working on FHD-909, a selective inhibitor targeting SMARCA2, which is implicated in SMARCA4-mutated cancers. This focus on precision medicine has the potential to address unmet needs in oncology, particularly for patients with specific genetic mutations. While the company’s research shows promise, InvestingPro analysis reveals the company is not yet profitable, with an EBITDA of -$91.89 million in the last twelve months. Get access to 10+ additional ProTips and comprehensive financial metrics with an InvestingPro subscription.

The partnership with Eli Lilly represents a significant vote of confidence in Foghorn’s approach and capabilities. Eli Lilly has invested substantially in the collaboration, with an upfront payment of $300 million and an additional $80 million in equity. The agreement between the two companies includes a 50/50 economic split on therapies targeting SMARCA2, with Foghorn also set to receive tiered royalties on sales outside the United States. The company maintains a strong liquidity position, with a current ratio of 3.16 and more cash than debt on its balance sheet, providing runway for its development programs.

The financial details of the collaboration underscore the potential value of Foghorn’s pipeline and technology. The undisclosed program mentioned alongside the SMARCA2-targeted therapies hints at a broader scope of research and development activities that could further bolster the company’s prospects.

Foghorn’s partnership with Eli Lilly, along with the reiterated price target and rating by Citizens JMP, highlights the biotech firm’s strategic position in the oncology market. The continued development of FHD-909 and other therapies in Foghorn’s pipeline could pave the way for new treatment options for cancer patients with specific genetic profiles.

In other recent news, Foghorn Therapeutics has made significant developments that investors should note. The company announced the appointment of Neil Gallagher, M.D., Ph.D., and Stuart Duty to its Board of Directors, bringing extensive experience in oncology drug development and finance, respectively. Additionally, Foghorn Therapeutics adjusted its at-the-market (ATM) offering, reducing the potential sale of shares from $200 million to $100 million, a strategic move that may reflect the company’s current capital requirements.

JMP Securities has maintained a Market Outperform rating for Foghorn Therapeutics, setting a price target of $9.00, citing progress in clinical trials and strategic positioning of its lead asset, FHD-909. The firm also highlighted interest from Eli Lilly in Foghorn’s chromatin biology focus, with FHD-909 advancing through Phase 1 trials. Meanwhile, H.C. Wainwright has reiterated a Buy rating with a $13.00 price target, emphasizing the significance of upcoming Phase 1a/b study results for FHD-909 at the AACR 2025 Annual Meeting.

The analyst from H.C. Wainwright pointed out FHD-909’s potential in targeting chromatin remodeling complexes, which could validate Foghorn’s broader strategy. Foghorn’s partnership with Eli Lilly, involving a $380 million upfront deal, further underscores the company’s promising preclinical data and strategic collaborations. These developments reflect Foghorn Therapeutics’ ongoing efforts in advancing its oncology pipeline and securing strategic partnerships.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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