Foghorn Therapeutics Inc. (Nasdaq: FHTX) said it will not advance its FHD-909 cancer drug candidate after a Phase 1 dose escalation trial failed to demonstrate sufficient efficacy, according to a press release from the Watertown, Mass.-based biotechnology company.

Foghorn and its partner Eli Lilly reviewed clinical data from the trial of FHD-909 (LY4050784), a small molecule that selectively inhibits the SMARCA2 protein, and concluded the drug did not meet the efficacy threshold required to proceed to the clinical development expansion phase. The two companies also decided not to advance a separate selective SMARCA2 degrader program, and do not anticipate further collaboration activities.

"The biology of the SMARCA2/4 synthetic lethality relationship has not translated into the level of efficacy required to further advance the program," said Adrian Gottschalk, President and Chief Executive Officer of Foghorn Therapeutics.

In response, Foghorn said it will reduce its workforce by approximately 40% and realign its operating structure. The company said these measures are expected to extend its cash runway into the second half of 2029.

Foghorn said it will redirect resources toward its wholly owned pipeline, which includes a selective EP300 degrader, a selective CBP degrader, a novel oral immunology and inflammation program, and an induced proximity platform.