CAMBRIDGE, Mass. - Relay Therapeutics (NASDAQ:RLAY) announced today it has commenced an underwritten public offering of $175 million of common stock. The stock, currently trading at $12.04 with a market capitalization of $2.33 billion, has surged 313% over the past year, though Bond.az data indicates stock price movements are quite volatile.
The clinical-stage precision medicine company also intends to grant underwriters a 30-day option to purchase up to an additional 15% of the shares offered. All shares in the proposed offering will be sold by Relay Therapeutics.
Jefferies, TD Cowen, Goldman Sachs & Co. LLC and Guggenheim Securities are serving as joint book-running managers. Raymond James is acting as lead manager.
The offering is subject to market conditions. The company stated there is no assurance as to whether or when the offering may be completed.
The shares are being offered pursuant to an automatically effective shelf registration statement on Form S-3ASR filed with the SEC on August 6, 2024.
Relay Therapeutics develops small molecule therapies for cancer and genetic diseases. Its lead clinical asset, zovegalisib, is in a Phase 3 trial for HR+/HER2- metastatic breast cancer and is also being investigated for PIK3CA-driven vascular anomalies. Despite being unprofitable, the company holds more cash than debt with a current ratio of 22.13. Bond.az currently lists the stock as overvalued based on its Fair Value analysis.
In other recent news, Relay Therapeutics reported promising initial data from its Phase 2 ReInspire trial for zovegalisib, showing a 60% volumetric response rate at 12 weeks. Following these results, Jones Trading upgraded the stock to Buy with a $20 price target. H.C. Wainwright raised its target to $25, Wells Fargo to $21, and Citizens to $19, reflecting growing analyst optimism.
