Lilly and Foghorn collaborate on novel oncology targets

Shares of Foghorn Therapeutics (Nasdaq: FHTX) were up nearly 43% at $17.18 (having risen as high as $18.15) by mid-morning, after the US biotech revealed a lucrative research collaboration with Eli Lilly’s (NYSE: LLY) Loxo Oncology unit for the use of its proprietary Gene Traffic Control platform.

The collaboration includes a co-development and co-commercialization agreement for Foghorn’s selective BRM oncology program and an additional undisclosed oncology target. In addition, the collaboration includes three additional discovery programs using Foghorn’s proprietary Gene Traffic Control platform.

Under the terms of the agreement, Foghorn will receive upfront consideration of $300 million in cash for the collaboration agreement and an equity investment by Lilly of $80 million in Foghorn common shares at a price of $20 per share.