RLAY - Relay climbs 14% as Raymond James issues bullish view ahead of data readout

2023-04-13 14:20:02 ET

Relay Therapeutics ( NASDAQ: RLAY ) gained 14% on Thursday after Raymond James launched its coverage with an Outperform rating and a $29 per share target as the company prepares to release data for its cancer candidate RLY-2608 at an upcoming medical event.

As reasons for the decision, Raymond James analyst Dane Leone compared the anti-tumor potential of the PI3K? kinase inhibitor against phosphatidylinositol 3-kinase inhibitor apelisib.

“We think pan-mutant inhibition with agents like RLY-2608 that have favorable selectivity over wild type inhibition can effect greater anti-tumor activity relative to apelisib and greatly expand utilization of the drug class,” the analyst wrote.

Last month, Relay ( RLAY ) announced that the initial clinical data from the company’s ReDiscover trial for RLY-2608 would be presented at American Association for Cancer Research (AACR) Annual Meeting 2023, taking place from Apr. 14 to Apr. 19.

ReDiscover is the company’s first-in-human clinical trial for RLY-2608, and RLAY initiated the second arm of the dose escalation part of this trial in April 2022, evaluating RLY-2608 in combination with fulvestrant in certain patients with breast cancer.

Seeking Alpha analyst Edmund Ingham reaffirmed his Buy rating on Relay ( RLAY ) in February, citing its AI-led drug discovery platform, among other things.

For further details see: