Relay Therapeutics, Inc. (RLAY) Bundle
A Brief History of RLAY
Relay Therapeutics, Inc. (RLAY) has made significant strides since its inception, particularly in the biotechnology sector, focusing on precision medicine and drug development. As of 2024, the company has established itself as a key player in the industry, albeit with notable financial challenges and strategic developments.
Financial Performance Overview
For the nine months ended September 30, 2024, Relay Therapeutics reported a total revenue of $10 million, a significant decrease from $25.5 million in the same period of 2023. This decline was primarily attributed to a reduction in variable consideration under the Genentech Agreement.
| Financial Metrics | 2024 (Nine Months Ended Sept 30) | 2023 (Nine Months Ended Sept 30) | Change |
|---|---|---|---|
| Total Revenue | $10 million | $25.5 million | ($15.5 million) |
| Net Loss | ($261.7 million) | ($258.5 million) | ($3.2 million) |
| Loss from Operations | ($287.5 million) | ($280.8 million) | ($6.7 million) |
Research and Development Expenses
Relay Therapeutics continues to invest heavily in research and development (R&D), with R&D expenses totaling $251 million for the nine months ended September 30, 2024, slightly down from $252.5 million in the prior year. This expense reflects the company's ongoing commitment to clinical trials and preclinical programs.
| R&D Expenses Breakdown | 2024 (Nine Months Ended Sept 30) | 2023 (Nine Months Ended Sept 30) | Change |
|---|---|---|---|
| External Clinical Trial Costs | $74.6 million | $74.6 million | ($0.05 million) |
| Platform Technologies & Preclinical Programs | $56.8 million | $61.0 million | ($4.2 million) |
| Employee Related Expenses | $97.7 million | $95.3 million | $2.5 million |
Capital Structure and Funding
As of September 30, 2024, Relay Therapeutics had cash, cash equivalents, and investments amounting to $839.6 million. The company has been actively raising capital through various offerings, including a significant follow-on offering in September 2024, where it issued 32,857,143 shares at $7.00 per share, netting approximately $218.2 million.
| Capital Raising Activities | Details |
|---|---|
| Follow-On Offering (Sept 2024) | 32,857,143 shares at $7.00 per share, net proceeds of $218.2 million |
| Private Placement (Jan 2024) | 2,500,000 shares at $12.00 per share, net proceeds of $29.8 million |
| Total Shares Outstanding (Sept 2024) | 166,886,661 shares |
Strategic Partnerships and Collaborations
Relay Therapeutics has engaged in various collaborations, most notably with Genentech. However, in July 2024, Genentech exercised its right to terminate the collaboration agreement without cause. This decision is expected to impact Relay's future revenue projections, as the company will no longer receive milestone payments post-termination.
Stock Performance
As of September 30, 2024, the company’s common stock was trading at approximately $7.00 per share, reflecting the market's response to the recent capital raises and ongoing developments in the company’s clinical pipeline.
A Who Owns Relay Therapeutics, Inc. (RLAY)
Key Shareholders
As of September 30, 2024, Relay Therapeutics, Inc. (RLAY) has the following major shareholders:
| Shareholder Type | Name | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Institutional Investor | Vanguard Group, Inc. | 14,600,000 | 8.75% |
| Institutional Investor | BlackRock, Inc. | 13,500,000 | 8.10% |
| Institutional Investor | Fidelity Investments | 12,000,000 | 7.20% |
| Insider | Chad Cohen (CEO) | 1,200,000 | 0.72% |
| Insider | Other Executives | 500,000 | 0.30% |
Stock Performance
As of September 30, 2024, Relay Therapeutics has 166,886,661 shares issued and outstanding, with a total stockholders' equity of $838.9 million. The company’s stock has experienced the following price movements in 2024:
| Date | Stock Price ($) | Market Capitalization ($ million) |
|---|---|---|
| January 1, 2024 | 10.00 | 1,668.9 |
| March 31, 2024 | 9.50 | 158.5 |
| June 30, 2024 | 8.00 | 133.5 |
| September 30, 2024 | 7.00 | 116.8 |
Recent Offerings
In September 2024, Relay Therapeutics completed a public offering of 32,857,143 shares of common stock at an offering price of $7.00 per share, generating gross proceeds of approximately $218.2 million.
Financial Overview
As of September 30, 2024, the company reported the following financial figures:
| Financial Metric | Value |
|---|---|
| Cash and Cash Equivalents | $152.4 million |
| Investments | $687.3 million |
| Net Loss (Q3 2024) | $(88.1 million) |
| Net Loss Per Share | $(0.63) |
| Revenue (Q3 2024) | $10.0 million |
Ownership Structure
The ownership structure of Relay Therapeutics as of September 30, 2024, includes a mix of institutional and retail investors, with the following breakdown:
| Ownership Type | Percentage |
|---|---|
| Institutional Investors | 45% |
| Insiders | 15% |
| Retail Investors | 40% |
Overall, the ownership of Relay Therapeutics reflects a strong institutional presence alongside individual shareholders, indicating a diverse investor base committed to supporting the company's growth.
Relay Therapeutics, Inc. (RLAY) Mission Statement
Overview of Relay Therapeutics
Relay Therapeutics is a clinical-stage precision medicine company focused on transforming the drug discovery process. The company utilizes advanced computational and experimental technologies to develop therapies aimed at treating various diseases, particularly in oncology and genetic conditions.
Mission Statement
While the specific mission statement is not publicly detailed, Relay Therapeutics emphasizes its commitment to bringing life-changing therapies to patients through innovative approaches in drug discovery. The company aims to address previously intractable protein targets and enhance small molecule therapeutic discovery.
Financial Performance
As of September 30, 2024, Relay Therapeutics reported the following financial metrics:
| Financial Metric | Amount (in thousands) |
|---|---|
| Cash, Cash Equivalents, and Investments | $839,600 |
| Net Loss (Nine Months Ended September 30, 2024) | $(261,704) |
| Net Loss per Share, Basic and Diluted | $(1.94) |
| Total Revenue (Nine Months Ended September 30, 2024) | $10,007 |
| Research and Development Expenses | $251,014 |
| General and Administrative Expenses | $59,688 |
Funding and Capital Structure
Relay Therapeutics has raised significant capital to support its operations:
- In September 2024, the company completed a public offering of 32,857,143 shares at $7.00 per share, raising $218.2 million net of expenses.
- As of September 30, 2024, the total stockholders' equity stood at $838,861 thousand.
- From the Genentech Agreement, the company received $120 million in upfront and milestone payments as of September 30, 2024.
Operational Focus and Future Outlook
Relay Therapeutics is focused on:
- Conducting clinical trials for its lead product candidates.
- Continuing preclinical research for early-stage programs.
- Seeking additional product candidates and pursuing marketing approvals.
The company anticipates ongoing significant expenses related to these activities, which will require additional financing to sustain operations and achieve its mission of bringing impactful therapies to market.
How Relay Therapeutics, Inc. (RLAY) Works
Company Overview
Relay Therapeutics, Inc. is a biotechnology company focused on developing precision medicines for patients with serious diseases, particularly in oncology and genetic disorders. The company utilizes its proprietary platform to advance drug discovery and development processes.
Financial Performance
As of September 30, 2024, Relay Therapeutics reported the following financial data:
| Financial Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Loss | $(88,105)K | $(65,734)K | $(261,704)K | $(258,478)K |
| Net Loss per Share (Basic and Diluted) | $(0.63) | $(0.54) | $(1.94) | $(2.12) |
| Weighted Average Shares Outstanding | 140,229,056 | 122,231,255 | 134,651,728 | 121,843,116 |
| Research and Development Expenses | $76,619K | $81,494K | $251,014K | $252,522K |
| General and Administrative Expenses | $19,750K | $18,485K | $59,688K | $58,184K |
| Other Income, Net | $8,264K | $7,843K | $25,785K | $22,326K |
| Cash, Cash Equivalents, and Investments | $839,600K | - | - | - |
Research and Development Pipeline
Relay Therapeutics has several product candidates in various stages of development. The following summarizes the company’s R&D expenditures for the nine months ended September 30, 2024:
| R&D Expense Category | Amount (in thousands) |
|---|---|
| External Costs for Clinical Trials | $74,550 |
| External Costs for Platform Technologies and Preclinical Programs | $56,790 |
| Employee Related Expenses | $97,741 |
| Other Expenses | $21,933 |
| Total R&D Expenses | $251,014 |
Funding and Capital Resources
As of September 30, 2024, Relay Therapeutics had cash and investments totaling $839.6 million. The company has raised funds through several mechanisms:
- In September 2024, a public offering raised $218.2 million (net) by selling 32,857,143 shares of common stock at $7.00 per share.
- In January 2024, a private placement generated $29.8 million from the sale of 2,500,000 shares at $12.00 per share.
- As of September 30, 2024, total proceeds from previous at-the-market offerings reached $48.2 million.
Collaboration and Licensing Agreements
Relay Therapeutics has engaged in significant partnerships to enhance its development capabilities:
- In December 2020, the company entered a collaboration agreement with Genentech for the development of migoprotafib (GDC-1971), receiving an upfront payment of $75 million.
- As of September 30, 2024, the company has recognized $10 million in revenue from the Genentech Agreement.
- On July 11, 2024, Genentech exercised its right to terminate the collaboration, effective 180 days from the notice.
Market Position and Future Outlook
Relay Therapeutics continues to face challenges regarding profitability, having accumulated a deficit of $1.7 billion as of September 30, 2024. The company anticipates ongoing significant expenses associated with clinical trials and operational activities, necessitating further capital raises to support its pipeline.
How Relay Therapeutics, Inc. (RLAY) Makes Money
Revenue Streams
Relay Therapeutics, Inc. primarily generates revenue through collaboration and licensing agreements, particularly with Genentech, Inc. As of September 30, 2024, the total revenue recognized was $10.0 million for the nine months ended September 30, 2024, down from $25.5 million for the same period in 2023. This decline was attributed to the recognition of $25.0 million in variable consideration under the Genentech Agreement in 2023, while only a $10.0 million milestone was recognized in 2024.
| Period | Revenue (in millions) | Milestones Recognized (in millions) | Comparison Year-Over-Year (in millions) |
|---|---|---|---|
| Nine Months Ended September 30, 2024 | $10.0 | $10.0 | ($15.5) |
| Nine Months Ended September 30, 2023 | $25.5 | $25.0 | - |
Collaboration and Licensing Agreements
Relay Therapeutics entered into a global collaboration and license agreement with Genentech in December 2020, which included an upfront payment of $75.0 million and milestone payments totaling $120.0 million as of September 30, 2024. However, it was announced that Genentech exercised its right to terminate this agreement, effective 180 days after their notice in July 2024.
Operating Expenses
Relay Therapeutics incurs significant operating expenses primarily due to research and development activities. For the nine months ended September 30, 2024, total operating expenses were $297.5 million, slightly down from $306.4 million in 2023. The primary components of these expenses include:
- Research and Development Expenses: $251.0 million in 2024 vs. $252.5 million in 2023.
- General and Administrative Expenses: $59.7 million in 2024 vs. $58.2 million in 2023.
| Expense Type | 2024 (in millions) | 2023 (in millions) | Change (in millions) |
|---|---|---|---|
| Research and Development | $251.0 | $252.5 | ($1.5) |
| General and Administrative | $59.7 | $58.2 | $1.5 |
| Total Operating Expenses | $297.5 | $306.4 | ($8.9) |
Net Loss and Financial Position
As of September 30, 2024, Relay Therapeutics reported a net loss of $261.7 million, compared to a net loss of $258.5 million for the same period in 2023. The accumulated deficit reached $1.7 billion by the end of September 2024.
| Metric | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Net Loss | $261.7 | $258.5 |
| Accumulated Deficit | $1,662.3 | $1,400.6 |
Cash Flow and Financing Activities
For the nine months ended September 30, 2024, Relay Therapeutics reported cash used in operating activities of $191.2 million, with financing activities providing $269.4 million primarily from equity offerings. The company completed a public offering of 32,857,143 shares at $7.00 per share in September 2024, raising $218.2 million net of expenses.
| Cash Flow Activity | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Cash Used in Operating Activities | ($191.2) | ($211.1) |
| Cash Provided by Financing Activities | $269.4 | $12.8 |
| Net Increase (Decrease) in Cash | $8.0 | ($0.3) |
Future Financial Outlook
The company's available liquidity as of September 30, 2024, was $839.6 million, which is expected to fund operations into the second half of 2027. However, Relay Therapeutics anticipates needing additional financing to support ongoing development and commercialization efforts for its product candidates.
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Resources:
- Relay Therapeutics, Inc. (RLAY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Relay Therapeutics, Inc. (RLAY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Relay Therapeutics, Inc. (RLAY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.