Relay Therapeutics to explore RLY-2608 outside of cancer, says Oppenheimer

Oppenheimer says the biggest takeaway from Relay Therapeutics’ research and development event was the company’s plans to explore RLY-2608 outside of cancer. The firm sees it as a “vote of confidence for a program that many had already written of.” Judging by management’s body language, it was clear they had learned their lesson and want RLY-2608’s next data update to be large enough and long enough to get a definitive read on clinical benefit, the analyst tells investors in a research note. Oppenheimer says RLY-2608’s efficacy is on par with alpelisib, but with better tolerability should translate to improved clinical benefit rate. It believes 50% is a well-established benchmark that RLY-2608 can beat. The firm keeps an Outperform rating on the shares with a $25 price target.