Tuesday, H.C. Wainwright adjusted its price target on shares of Foghorn Therapeutics (NASDAQ:FHTX) to $13 from the previous $20, while maintaining a Buy rating on the stock. Currently trading at $5.51, FHTX has experienced significant volatility, with the stock down nearly 12% in the past week according to InvestingPro data.
The change comes in the wake of the company's announcement on Monday regarding the halt of its solo development of FHD-286 in combination with decitabine for patients with relapsed and/or refractory acute myeloid leukemia (AML).
Foghorn Therapeutics disclosed that although there were some responses to the treatment, the clinical benefit rate did not reach the internal benchmark of a 20% complete response (CR) or complete response with incomplete blood count recovery (CRi).
Despite this setback, there is still potential for the FHD-286 program. The company plans to present full data from the program at an upcoming medical meeting and has received several proposals for investigator-sponsored studies across various oncological indications.
The firm emphasized that Foghorn Therapeutics is well-capitalized, with a cash reserve of $267.4 million, which should support the company’s operations and enable the initiation of three to four Investigational New Drug (IND) applications in the next 24 months. These initiatives are anticipated to provide significant opportunities to progress the company's pipeline.
In light of the recent news and the potential for near-term value from upcoming programs, H.C. Wainwright reiterated its confidence in Foghorn's strategy of targeting specific subunits within the BAF complex as a viable approach in oncology.
Despite the reduction in the price target, the firm's outlook on the stock remains positive. With a market capitalization of $306 million and an overall Financial Health Score of "FAIR" according to InvestingPro, investors can access detailed analysis and 13 additional ProTips about FHTX through InvestingPro's comprehensive research reports.
In other recent news, Foghorn Therapeutics has experienced major developments in its financial outlook and drug development programs. The company recently halted the development of its drug candidate FHD-286, intended for Acute Myeloid Leukemia (AML), due to non-satisfactory response rates in the Phase 1 trial. Resources previously allocated to FHD-286 are now being redirected to other drug candidates, extending the company's cash runway into 2027.
Financial analysts from Jefferies and Morgan Stanley (NYSE:MS) have updated their perspectives on Foghorn Therapeutics. Jefferies has reduced the price target for Foghorn Therapeutics shares to $14, maintaining a Buy rating, while Morgan Stanley has raised its price target to $9.00, retaining an Equalweight rating.
Foghorn Therapeutics is now prioritizing its proprietary pipeline and collaboration programs with Lilly, including the clinical-stage selective SMARCA2 inhibitor FHD-909. The company is also considering partnerships or Investigator Sponsored Trials to further the development of FHD-286.
In addition to these changes, Foghorn Therapeutics has appointed Dr. Anna Rivkin as its new Chief Business Officer. With over 20 years of industry experience, Dr. Rivkin is expected to significantly contribute to the company's business development. These are the latest developments in Foghorn Therapeutics' trajectory.
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