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

December 10, 2021

$1,680M

$300M

$80M

n/a

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

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

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

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

Development and Commercialization License

Co-Development, Co-Promotion, Shared Costs

• 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.

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.