WS #15206
Foghorn Therapeutics’ decision to cut 40% of its workforce and abandon key programs in favor of extending its runway to 2029 highlights a growing liquidity crisis in the biotech sector. As risk-off sentiment grows and capital becomes scarce, smaller and mid-cap biotechs are forced to make painful trade-offs between R&D and survival, contrasting sharply with the robust balance sheets of mega-cap tech.
Biotech Liquidity Crunch
Foghorn Therapeutics’ decision to cut 40% of its workforce and abandon key programs in favor of extending its runway to 2029 highlights a growing liquidity crisis in the biotech sector. As risk-off sentiment grows and capital becomes scarce, smaller and mid-cap biotechs are forced to make painful trade-offs between R&D and survival, contrasting sharply with the robust balance sheets of mega-cap tech.