Relay Therapeutics president sells shares for $2,877

CAMBRIDGE, MA—Donald A. Bergstrom, the President of Research and Development at Relay Therapeutics, Inc. (NASDAQ:RLAY), has sold 657 shares of the company's common stock. The transaction, which took place on December 27, 2024, was executed at a price of $4.38 per share, totaling $2,877. The sale comes as RLAY trades near its 52-week low of $4.11, down 62% year-to-date, though InvestingPro analysis suggests the stock may be undervalued.

The sale was conducted to cover Bergstrom's income tax withholding obligations related to the vesting of 2,187 restricted stock units (RSUs) on December 26, 2024. Following this transaction, Bergstrom holds 520,088 shares, which include 447,790 shares underlying RSUs. The company maintains a strong balance sheet with more cash than debt and a robust current ratio of 18.42, according to InvestingPro data.

This transaction was carried out in accordance with Relay Therapeutics' policies regarding RSU vesting and was not at Bergstrom's discretion. For deeper insights into insider transactions and 10+ additional ProTips about RLAY, including detailed financial health metrics, visit InvestingPro.

In other recent news, Relay Therapeutics has seen significant developments in its drug trials and financial position. The company has finalized a global licensing agreement for its FGFR2 inhibitor, lirafugratinib, with Elevar Therapeutics, a subsidiary of HLB Inc (KQ:028300). The agreement could potentially bring up to $75 million in upfront and regulatory milestone payments to Relay Therapeutics, with an additional $425 million in commercial milestone payments.

In a recent data update, Relay Therapeutics offered a more mature analysis of RLY-2608, a treatment for second-line and beyond breast cancer. Analysts from BofA Securities predict that RLY-2608 could achieve peak sales surpassing $1 billion. The firm reaffirmed a Buy rating on Relay Therapeutics, despite reducing the price target from $21 to $20.

The U.S. Food and Drug Administration has also approved Roche's Itovebi (inavolisib) for a specific breast cancer treatment, which includes Relay Therapeutics' drug candidate. This approval was based on the successful outcomes of the Phase 3 INAVO120 trial.

Analysts' ratings for Relay Therapeutics have varied, with firms like H.C. Wainwright, Stifel, and Jefferies maintaining or upgrading their ratings, while Oppenheimer downgraded their rating due to concerns about the selectivity profile of RLY-2608.

Lastly, Relay Therapeutics has initiated a $200 million underwritten public offering of its common stock. The company's financial position as of the second quarter of 2024 reported a cash position of approximately $688 million, expected to fund operations into 2026.

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