Foghorn Therapeutics Inc. (FHTX) gained a small 1.13% after hours, while it jumped a huge 54.96% in regular trading on Monday. The stock has been gaining on the news of Foghorn’s collaboration with Lilly for novel oncology medicine.
During regular trading, the stock fluctuated between $15.26 and $19.00, closing the session at $18.58. While FHTX gained big in normal trading, the momentum calmed down in the after hours. Hence, the stock gained a mere $0.21 at $18.79 with an after-hours’ volume of 1.35 million.
FHTX stock’s Movement
The news of the strategic collaboration fueled the stock’s volume to reach a huge 23.79 million on Monday. Which is 5,709% of its 564-day average volume of a mere 416.67 thousand shares. As the FHTX stock gained huge on the strategic collaboration news, its five-day gain has reached 72.20%. Moreover, the stock has added a value of 36.32% last month while losing 8.34% year to date.
As the volume and gains of the stock both calmed down in the after-hours, it can be suspected that FHTX will soon enter market corrections. While it is bound to do so, the opening of premarket on Tuesday will answer the question.
The Strategic Collaboration
On December 13, FHTX and Loxo Oncology at Lilly, which is an R&D group of Eli Lily and Company (LLY) announced their collaboration. Using FHTX’s proprietary Gene Traffic Control® (GTC) platform, they will create novel oncology medicine.
Moreover, the parties will co-develop and co-commercialize FHTX’s BRM oncology program and another undisclosed oncology target. Furthermore, three additional discovery programs using FHTX’s GTC platform are also included.
According to the agreement, Lilly will give cash of $300 million in upfront consideration to Foghorn. Moreover, at a per-share price of $20, Lilly will also invest (equity) $80 million in the company’s common shares.
In addition, both the teams shared their positive hopes and expectations for the collaboration and its outcomes.
FHTX’s Corporate Update
On November 09, the company provided its third-quarter corporate update. As per the highlights, FHTX does its first patients with FHD-609 in the trial for the treatment of synovial sarcoma. Further, the company expects initial data from the phase 1 study of FHD-609 in the first half of 2022.
In addition, on September 30, 2021, the company had cash, cash equivalents, and marketable securities of $120.8 million. This compares to $185.8 million on December 31, 2020.
