BofA’s Hartnett says concentrated U.S. stock returns are likely to persist
On Tuesday, Citizens JMP analysts reaffirmed their Market Outperform rating for Relay Therapeutics stock (NASDAQ: RLAY) and maintained the price target at $12.00, representing significant upside from the current price of $3.18. The stock has shown strong momentum, gaining over 11% in the past week. This decision follows the presentation of updated data from the Phase 2 ReDiscover trial at the American Society of Clinical Oncology (ASCO) conference.
Relay Therapeutics, currently valued at $545 million, showcased data evaluating RLY-2608 in combination with fulvestrant for PIK3CA-mutated metastatic breast cancer. The results from the ReDiscover trial indicated improvements in the treatment’s effectiveness, particularly in patients with PIK3CA kinase-domain mutations. The trial demonstrated an increase in median progression-free survival (mPFS) by seven months, with an overall improvement of 1.1 months compared to earlier updates. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt, though it’s currently burning through cash reserves.
The company is also preparing for the ReDiscover-2 Phase 3 pivotal trial, which is set to begin in mid-2025. Management emphasized the importance of investigator interactions at ASCO to facilitate site activation for the upcoming trial. InvestingPro analysis shows the company maintains a ’Fair’ financial health score, with 8 additional key insights available to subscribers, including detailed profitability and growth metrics.
Relay Therapeutics continues to lead in the PI3K inhibitor space, with no unexpected developments from competitors at the ASCO conference. The company’s focus remains on advancing its clinical programs and maintaining its position in the market. For a comprehensive analysis of RLAY’s market position and future potential, access the detailed Pro Research Report available exclusively on InvestingPro.
In other recent news, Relay Therapeutics has shared updated interim clinical data for its investigational drug RLY-2608, targeting a specific mutation in advanced breast cancer. The data, presented at the American Society of Clinical Oncology 2025 Annual Meeting, showed a median progression-free survival of 10.3 months overall and 11.0 months in second-line patients with PI3Kα-mutated, HR+, HER2- locally advanced or metastatic breast cancer. The clinical benefit rate across all patients was reported at 67%, with 81% experiencing tumor reductions. The drug, part of the ReDiscover study, has been generally well-tolerated, with most adverse events being low-grade and reversible. Relay Therapeutics plans to initiate a Phase 3 study, ReDiscover-2, in mid-2025 and is also enrolling patients for a study in vascular malformations. The company is testing RLY-2608 in combination with other agents, including Pfizer’s selective CDK4 inhibitor atirmociclib and the CDK4/6 standard-of-care ribociclib, with dose escalation ongoing. The investigational drug aims to meet a significant unmet need for patients with PI3Kα mutations, leveraging Relay Therapeutics’ Dynamo® platform to design mutant-selective inhibitors.
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