Relay Therapeutics Reports First Quarter 2025 Financial Results and Corporate Updates
Cash runway extended into 2029
Initiation of Phase 3 ReDiscover-2 trial on track for mid-2025
Initiated Phase 1 RLY-2608 vascular malformations clinical trial in Q1
Extended cash runway expected to fully fund the Company meaningfully past topline data for ReDiscover-2 trial and through clinical proof-of-concept data in Vascular Malformations
Approximately $710 million in cash, cash equivalents and investments at end of Q1 2025
CAMBRIDGE, Mass., May 05, 2025 (GLOBE NEWSWIRE) -- Relay Therapeutics, Inc. (Nasdaq: RLAY), a clinical-stage precision medicine company transforming the drug discovery process by combining leading-edge computational and experimental technologies, today reported first quarter 2025 financial results and corporate updates.
'2025 is a year of execution across a range of high value clinical programs,' said Sanjiv Patel, M.D., President and Chief Executive Officer of Relay Therapeutics. 'The ongoing changes to our cost base are designed to enable a full funding of key initiatives including generating topline data from the ReDiscover-2 trial and clinical proof-of-concept data in vascular malformations.'
Strategic Cost Reductions Implemented to Extend Runway into 2029 and to Fully Fund Key Value Drivers
These reductions help extend operating runway into 2029 and are aimed at funding key objectives, including:
Completion of ReDiscover-2 Phase 3 trial of RLY-2608 + fulvestrant in metastatic breast cancer well past topline data readout and additional breast cancer clinical trials
Execution of RLY-2608 Phase 1 vascular malformations trial through clinical proof-of-concept data
Advance Fabry and NRAS program to Investigational New Drug application (IND) readiness
Advance one research-stage program
Specific cost reductions include:
Over the past year, focused the research portfolio and platform on the highest value areas resulting in a reduction in the research run rate spend by approximately 80%
Reduced research-stage programs from four to one
Recent reduction in force by approximately 70 people
Executed a global out-license of RLY-4008 with Elevar Therapeutics, Inc. (Elevar) with potential for downstream economics
Phased the timing of entry into the clinic for Fabry and NRAS targeted programs
RLY-2608 Highlights
Breast Cancer
Initiation of Phase 3 ReDiscover-2 trial of RLY-2608 + fulvestrant in PI3Kα-mutated, CDK4/6 pre-treated, HR+/HER2- advanced breast cancer remains on track for mid-2025
Abstract accepted to ASCO for update of Phase 1b ReDiscover trial of RLY-2608 + fulvestrant
Focus of the abstract is updated 600mg BID (fasted) doublet data with median follow-up now greater than 12 months
Poster Title: Updated efficacy of mutant-selective PI3Kα inhibitor RLY-2608 in combination with fulvestrant in patients with PIK3CA-mutant HR+HER2- advanced breast cancer: ReDiscover trial
Date/Time: Monday, June 2, 10:00-1:00 p.m. ET (9:00-12:00 p.m. CT)
Continued advancement of the ongoing triplet cohorts with RLY-2608 + fulvestrant + atirmociclib or ribociclib
Planning continues for development of next-generation endocrine therapy combinations with RLY-2608
Vascular Malformations
Initiation of Phase 1 vascular malformations clinical trial in the first quarter of 2025
First Quarter 2025 Financial Results
Cash, Cash Equivalents and Investments: As of March 31, 2025, cash, cash equivalents and investments totaled $710.3 million, as compared to $781.3 million as of December 31, 2024. The company expects its current cash, cash equivalents, and investments will be sufficient to fund its operating expenses and capital expenditure requirements into 2029.
Revenue: Revenue was $7.7 million for the first quarter of 2025, as compared to $10.0 million for the first quarter of 2024. The revenue recognized in the first quarter of 2025 was due to completion of all performance obligations under the company's Exclusive License Agreement with Elevar. The revenue recognized in the first quarter of 2024 was due to a milestone achieved under the Collaboration and License Agreement with Genentech, Inc.
R&D Expenses: Research and development expenses were $73.8 million for the first quarter of 2025, as compared to $82.4 million for the first quarter of 2024. The decrease was primarily due to the series of strategic choices made to streamline the research organization throughout 2024.
G&A Expenses: General and administrative expenses were $18.7 million for the first quarter of 2025, as compared to $19.8 million for the first quarter of 2024. The decrease was primarily due to a decrease in stock compensation expense, partially offset by costs to obtain the agreement with Elevar, which were expensed commensurate with the timing of revenue recognized.
Net Loss: Net loss was $77.1 million for the first quarter of 2025, or a net loss per share of $0.46, as compared to a net loss of $81.4 million for the first quarter of 2024, or a net loss per share of $0.62.
About Relay Therapeutics
Relay Therapeutics (Nasdaq: RLAY) is a clinical-stage precision medicine company transforming the drug discovery process by combining leading-edge computational and experimental technologies with the goal of bringing life-changing therapies to patients. As the first of a new breed of biotech created at the intersection of complementary techniques and technologies, Relay Therapeutics aims to push the boundaries of what's possible in drug discovery. Its Dynamo® platform integrates an array of leading-edge computational and experimental approaches designed to drug protein targets that have previously been intractable or inadequately addressed. Relay Therapeutics' initial focus is on enhancing small molecule therapeutic discovery in targeted oncology and genetic disease indications. For more information, please visit www.relaytx.com or follow us on Twitter.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, without limitation, implied and express statements regarding Relay Therapeutics' strategy, business plans and focus; the progress and timing of the clinical development of the programs across Relay Therapeutics' portfolio; the expected therapeutic benefits and potential efficacy and tolerability of RLY-2608, both as a monotherapy and in combination with other agents, and its other programs, as well as the clinical data for RLY-2608; the interactions with regulatory authorities and any related approvals; the potential market opportunity for RLY-2608; the cash runway projection; the expected benefits resulting from the implementation of the cost saving measures and potential ability to fund key value drivers; and the expectations regarding Relay Therapeutics' use of capital and expenses. The words 'may,' 'might,' 'will,' 'could,' 'would,' 'should,' 'plan,' 'anticipate,' 'intend,' 'believe,' 'expect,' 'estimate,' 'seek,' 'predict,' 'future,' 'project,' 'potential,' 'continue,' 'target' and similar words or expressions, or the negative thereof, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.
Any forward-looking statements in this press release are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and important factors that may cause actual events or results to differ materially from those expressed or implied by any forward-looking statements contained in this press release, including, without limitation, risks associated with: Relay Therapeutics' restructuring activities may be more costly or time-consuming than we expect or may not achieve their intended results; the timing, execution, and expected impact of Relay Therapeutics' restructuring plans (including the scope and timing of workforce reductions); the expected decrease in annual spending; the expected sufficiency of Relay Therapeutics' existing cash resources; the internal and external costs required for Relay Therapeutics' ongoing and planned activities, and the resulting impact on expense and use of cash, may be higher than expected, which may cause the company to use cash more quickly than expected or to change or curtail some of Relay Therapeutics' plans or both; the impact of global economic uncertainty, geopolitical instability and conflicts, or public health epidemics or outbreaks of an infectious disease on countries or regions in which Relay Therapeutics has operations or does business, as well as on the timing and anticipated results of its clinical trials, strategy, future operations and profitability; significant political, trade, or regulatory developments, such as tariffs, beyond Relay Therapeutics' control; the delay or pause of any current or planned clinical trials or the development of Relay Therapeutics' drug candidates; the risk that the preliminary or interim results of its preclinical or clinical trials may not be predictive of future or final results in connection with future clinical trials of its product candidates and that interim and early clinical data may change as more patient data become available and are subject to audit and verification procedures; Relay Therapeutics' ability to successfully demonstrate the safety and efficacy of its drug candidates; the timing and outcome of its planned interactions with regulatory authorities; and obtaining, maintaining and protecting its intellectual property. These and other risks and uncertainties are described in greater detail in the section entitled 'Risk Factors' in Relay Therapeutics' most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, as well as any subsequent filings with the Securities and Exchange Commission. In addition, any forward-looking statements represent Relay Therapeutics' views only as of today and should not be relied upon as representing its views as of any subsequent date. Relay Therapeutics explicitly disclaims any obligation to update any forward-looking statements. No representations or warranties (expressed or implied) are made about the accuracy of any such forward-looking statements.
Contact:Pete Rahmerprahmer@relaytx.com
Media:Dan Budwick1AB973-271-6085dan@1abmedia.com
Relay Therapeutics, Inc.Condensed Consolidated Statements of Operations and Comprehensive Loss(In thousands, except share and per share data)(Unaudited)
Three Months Ended March 31,
2025
2024
Revenue:
License and other revenue
$
7,679
$
10,007
Total revenue
7,679
10,007
Operating expenses:
Research and development expenses
$
73,809
$
82,403
Change in fair value of contingent consideration liability
—
(1,832
)
General and administrative expenses
18,739
19,799
Total operating expenses
92,548
100,370
Loss from operations
(84,869
)
(90,363
)
Other income:
Interest income
7,813
8,951
Other (expense) income
(9
)
25
Total other income, net
7,804
8,976
Net loss
$
(77,065
)
$
(81,387
)
Net loss per share, basic and diluted
$
(0.46
)
$
(0.62
)
Weighted average shares of common stock, basic and diluted
169,233,155
130,843,013
Other comprehensive income (loss):
Unrealized holding gain (loss)
1,029
(962
)
Total other comprehensive income
1,029
(962
)
Total comprehensive loss
$
(76,036
)
$
(82,349
)
Relay Therapeutics, Inc.Selected Condensed Consolidated Balance Sheet Data(In thousands)(Unaudited)
March 31,2025
December 31,2024
Cash, cash equivalents and investments
$
710,355
$
781,323
Working capital (1)
702,607
758,475
Total assets
799,362
871,296
Total liabilities
78,281
93,504
Total stockholders' equity
721,081
777,792
Restricted cash
2,119
2,119
(1) Working capital is defined as current assets less current liabilities.Sign in to access your portfolio
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
26 minutes ago
- Business Insider
‘A Multibagger Potential,' Says Investor About Palantir Stock
Few stocks in the AI space have captured investor attention quite like Palantir (NASDAQ:PLTR). With strong revenue growth, solid profit margins, and a growing roster of loyal clients, the company has become a force to watch. Its share price has skyrocketed by roughly 472% over the past year, driven by a wave of enthusiasm. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter What sets Palantir apart isn't just performance – it's the crowd behind the rally. Retail investors now own more than 40% of the stock, a far higher share than seen in tech giants like Microsoft (23%), Nvidia (29%), or Amazon (26%). That unusual ownership mix hasn't gone unnoticed. One investor, known by the pseudonym The Alpha Analyst, remarked: 'Palantir stands out for its unusually high retail ownership among mega caps, creating both volatility risks and a rerating opportunity as institutions accumulate.' According to Alpha Analyst, that shift may already be underway. The investor notes that institutional investors were largely sidelined during Palantir's IPO due to structural limitations, such as the dual-class voting shares favoring CEO Alex Karp. Combined with the stock's rapid run-up, these factors initially tempered institutional appetite. However, as the company matures and demand for AI-driven platforms continues to climb, Alpha Analyst believes that more institutions will begin building positions, providing a potential second wave of momentum for the stock. It's not just this restructuring that could push PLTR shares higher. There are also ample opportunities for Palantir to grow its business: attracting 'stickier' government and enterprise clients, capitalizing on its established defense and intelligence capabilities, and expanding its international footprint. Of course, the valuation question looms large, as the share price has been consistently trending skyward. The Alpha Analyst appreciates these concerns – 'it would be good (always is) to be able to buy Palantir at better valuations' – but nevertheless believes that there is no time like the present. 'Given the long-term multibagger potential even at these levels, and the structural strength of the rally, waiting will not be ideal advice,' concludes Alpha Analyst, who obviously rates PLTR a Buy. (To watch The Alpha Analyst's track record, click here) Wall Street, while of mixed opinions, is by and large happy to wait. With 3 Buy, 11 Hold, and 4 Sell recommendations, PLTR carries a Hold (i.e., Neutral) consensus rating. Its 12-month average price target of $101.06 implies a downside of ~25% from current levels. (See PLTR stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
31 minutes ago
Asian shares are mixed as markets shrug at latest China-US trade deal
TOKYO -- Asian shares were trading mixed early Thursday after Wall Street's rally stalled as investors appeared not to react much to the results of the latest round of China-U.S. trade talks. U.S. futures slipped and oil prices slipped. Japan's Nikkei 225 lost 0.5% to 38,213.20. Hong Kong's Hang Seng sank 0.5% to 24,234.80, while the Shanghai Composite index edged 0.1% lower to 3,404.66. In South Korea, the Kospi gained 0.8% to 2,929.94, while Australia's S&P/ASX 200 edged 0.1% higher to 8,604.50. Taiwan's Taiex lost 0.8%. On Wednesday, the S&P 500 fell 0.3% to 6,022.24 for its first loss in four days. The Dow Jones Industrial Average was virtually unchanged at 42,865.77 after edging down by 1 point. The Nasdaq composite slipped 0.5% to 3,400.30. All told, the S&P 500 fell 16.57 points to 6,022.24. The Dow Jones Industrial Average slipped 1.10 to 42,865.77, and the Nasdaq composite sank 99.11 to 19,615.88. Several Big Tech stocks led the way lower, and a 1.9% drop for Apple was the heaviest weight on the market. It's been listless this week after unveiling several modest upcoming changes to the software that runs its devices. The action was stronger in the bond market, where Treasury yields eased after a report suggested President Donald Trump's tariffs are not pushing inflation much higher, at least not yet. U.S. consumers had to pay prices for food, gasoline and other costs of living that were 2.4% higher overall in May than a year earlier. That was up from April's 2.3% inflation rate, but it wasn't as bad as the 2.5% that Wall Street was expecting. A fear has been that Trump's wide-ranging tariffs could ignite an acceleration in inflation, just when it had seemed to get nearly all the way back to the Federal Reserve's 2% target from more than 9% three summers ago. It hasn't happened, though economists warn it may take months more to feel the full effect of Trump's tariffs. Trump said Wednesday that China will supply rare-earth minerals and magnets to the United States, while his government will allow Chinese students into U.S. universities in a deal that still needs an agreement by him and by China's leader. Trump also said that 'President XI and I are going to work closely together to open up China to American Trade. This would be a great WIN for both countries!!!' Investors are still hoping for a more sweeping trade deal that would ease tensions between the world's two largest economies. Hopes for such deals between the United States and countries around the world have been one of the main reasons the S&P 500 has charged nearly all the way back to its all-time high after dropping roughly 20% below a couple months ago. Without them, the fear is that Trump's high tariffs could drive the economy into a recession while pushing inflation higher. The S&P 500 is now sitting 2% below its record. Tesla swung between gains and losses before finishing with a rise of 0.1% to continue its shaky run. It's been recovering much of its big losses taken last week after Elon Musk's relationship with Trump imploded, which in turn raised fears about a loss of business for the electric-vehicle company. Musk on Wednesday backed away from some of his earlier comments and said they went 'too far.' In the bond market, the yield on the 10-year Treasury eased to 4.41% from 4.47% late Tuesday. Shorter-term yields, which more closely track expectations for what the Fed will do with overnight interest rates, fell more. Wednesday's better-than-expected reading on inflation raised expectations along Wall Street that the Fed could cut its main interest rate at least twice by the end of the year. In other dealings early Thursday, U.S. benchmark crude oil lost 33 cents to $67.82 per barrel. Brent crude, the international standard, shed 37 cents to $69.40 per barrel. The U.S. dollar slipped to 143.89 Japanese yen from 144.60 yen. The euro rose to $1.1520 from $1.1487.
CNBC
an hour ago
- CNBC
Trade tensions aren't stopping Chinese companies from pushing into the U.S.
BEIJING — Chinese companies are so intent on global expansion that even the biggest stock offering to date on Shanghai's tech-heavy STAR board counts the U.S. as one of its biggest markets, on par with China. Shenzhen-based camera company Insta360, a rival to GoPro, raised 1.938 billion yuan ($270 million) in a Shanghai listing Wednesday under the name Arashi Vision. Shares soared by 274%, giving the company a market value of 71 billion yuan ($9.88 billion). The United States, Europe and mainland China each accounted for just over 23% of revenue last year, according to Insta360, whose 360-degree cameras officially started Apple Store sales in 2018. The company sells a variety of cameras — priced at several hundred dollars — coupled with video-editing software. Co-founder Max Richter said in an interview Tuesday that he expects U.S. demand to remain strong and dismissed concerns about geopolitical risks. "We are staying ahead just by investing into user-centric research and development, and monitoring market trends that ultimately meet the consumer['s] needs," he told CNBC ahead of the STAR board listing. China launched the Shanghai STAR Market in July 2019 just months after Chinese President Xi Jinping announced plans for the board. The Nasdaq-style tech board was established to support high-growth tech companies while raising requirements for the investor base to limit speculative activity. In 2019, only 12% of companies on the STAR board said at least half of their revenue came from outside China, according to CNBC analysis of data accessed via Wind Information. In 2024, with hundreds more companies listed, that share had climbed to more than 14%, the data showed. "We are just seeing the tip of the iceberg. More and more capable Chinese firms are going global," said King Leung, global head of financial services, fintech and sustainability at InvestHK. Leung pointed to the growing global business of Chinese companies such as battery giant CATL, which listed in Hong Kong last month. "There are a lot of more tier-two and tier-three companies that are equally capable," he said. InvestHK is a Hong Kong government department that promotes investment in the region. It has organized trips to help connect mainland Chinese businesses with overseas opportunities, including one to the Middle East last month. Roborock, a robotic vacuum cleaner company also listed on the STAR board, announced this month it plans to list in Hong Kong. More than half of the company's revenue last year came from overseas markets. At the Consumer Electronics Show in Las Vegas this year, Roborock showed off a vacuum with a robotic arm for automatically removing obstacles while cleaning floors. The device was subsequently launched in the U.S. for $2,600. Other consumer-focused Chinese companies also remain unfazed by heighted tensions between China and the U.S. In November, Chinese home appliance company Hisense said it aimed to become the top seller of television sets in the U.S. in two years. And last month, China-based Bc Babycare announced its official expansion into the U.S. and touted its global supply chain as a way to offset tariff risks. Chinese companies have been pushing overseas in the last several years, partly because growth at home has slowed. Consumer demand has remained lackluster since the Covid-19 pandemic. But the expansion trend is now evolving into a third stage in which the businesses look to build international brands on their own with offices in different regions hiring local employees, said Charlie Chen, managing director and head of Asia research at China Renaissance Securities. He said that's a change from the earliest years when Chinese companies primarily manufactured products for foreign brands to sell, and a subsequent phase in which Chinese companies had joint ventures with foreign companies. Insta360 primarily manufactures out of Shenzhen, but has offices in Berlin, Tokyo and Los Angeles, Richter said. He said the Los Angeles office focuses on services and marketing — the company held its first big offline product launch in New York's Grand Central Terminal in April. Chen also expects the next phase of Chinese companies going global will sell different kinds of products. He pointed out that those that had gone global primarily sold home appliances and electronics, but are now likely to expand significantly into toys. Already, Beijing-based Pop Mart has become a global toy player, with its Labubu figurine series gaining popularity worldwide. Pop Mart's total sales, primarily domestic, were 4.49 billion yuan in 2021. In 2024, overseas sales alone surpassed that to hit 5.1 billion yuan, up 373% from a year ago, while mainland China sales climbed to 7.97 billion yuan. "It established another Pop Mart versus domestic sales in 2021," said Chris Gao, head of China discretionary consumer at CLSA. The Hong Kong-listed retailer doesn't publicly share much about its global store expansion plans or existing locations, but an independent blogger compiled a list of at least 17 U.S. store locations as of mid-May, most of which opened in the last two years. The toy company has been "very good" at developing or acquiring the rights to characters, Gao said. She expects its global growth to continue as Pop Mart plans to open more stores worldwide, and as consumers turn more to such character-driven products during times of stress and macroeconomic uncertainty.
