Bond.az - Jones Trading upgraded Relay Therapeutics (NASDAQ:RLAY) from Hold to Buy on Monday, raising its price target to $20 from $18. The upgrade follows encouraging initial clinical data for zovegalisib in vascular malformations.
In the trial, 60% of patients achieved a volumetric response, defined as at least a 20% reduction in volume by MRI. This exceeded the firm's threshold of 35% to 40%.
Analyst Matt Murray noted that the data suggests zovegalisib is both efficacious and safe for prolonged therapy. The probability of success for zovegalisib in vascular malformations was raised to 40% from 20%.
Focus may shift toward pediatric patients in the long term. The positive clinical results drove the price target increase and rating upgrade.
In related news, Relay Therapeutics released promising Phase 2 ReInspire trial data, with a 60% volumetric response rate. Several analysts, including H.C. Wainwright and Wells Fargo, have raised their price targets on the stock.
