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December 2021 Top Biopharma Deal: Foghorn – Loxo using Gene Traffic Control for New Oncology Treatments

Jan 10, 2022 | Deal of the Month, Partnership Deals

December 2021 Top Biopharma Deal Upfront
Foghorn partnership with Loxo (Eli Lilly) for selective BRM oncology therapies

Highlighted Deal Financial Comps

Date Announced:

December 10, 2021

Total Deal Value:


Upfront Cash:


Upfront Equity:


Option Payments:


Total Milestones:

up to $1,300M (dev., reg., and sales)


ex-U.S. program based, from tiered mid-single digit to twenties

Cost & Profit Split:

U.S. 50/50, co-dev and co-pro option

Deal Synopsis

The Asset:

Foghorn’s selective BRM oncology program and an additional undisclosed oncology target using Foghorn’s Gene Traffic Control platform

Deal Structure:

Development and Commercialization License

Partnership Features:

Co-Development, Co-Promotion, Shared Costs

Deal Details:

  • Loxo (Eli Lilly) will use Foghorn’s proprietary Gene Traffic Control platform to discover and develop therapeutic molecules directed to a BRM target and an additional undisclosed oncology target, plus three additional discovery programs.
  • Foghorn will receive $300M up front, $80M in an upfront equity investment (4,000,000 shares of common at $20.00 per share), and is eligible to receive up to $1.3B in development, regulatory, and sales milestones based on Foghorn’s option to participate in the U.S. costs/profits.
  • 50/50 U.S. cost/profit share for the BRM-selective program and one other undisclosed target. For the three discovery programs, Foghorn has an option to split U.S. costs/profits following the successful completion of dose-finding toxicity studies.
  • Ex-U.S. BRM-selective program and one other undisclosed target: Tiered low-double digit to the twenties royalties. Ex-U.S. other undisclosed target: Tiered mid-single digit to low-double digit royalties subject to royalty step-down provisions.

Last Month:

Congrats to Foghorn and Loxo for landing DealForma’s December 2021 Top Biopharma Deal. Last month’s Deal of the Month was Owkin and Sanofi’s partnership for Owkin’s AI and federated learning platform to advance Sanofi’s oncology pipeline. Read about it here.

DealForma’s Deal of the Month selection is based on the largest disclosed upfront cash and equity total in partnership deals involving R&D as announced in the month prior to this article. Data for this analysis was compiled using the DealForma biopharma deals database. All data are based on publicly disclosed figures and deal terms.

We invite you to answer interesting questions on biopharma business development and licensing using our data and carefully curated profiles on deals, pipelines, companies, funding, and business executives by visiting to schedule your personalized demo.


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