Summary
- Relay Therapeutics IPO'd in mid-July, raising $400 million - the third-largest biotech IPO in history.
- The company's Dynamo technology allows it to minutely map the activities of proteins and target hard-to-reach areas of clinical interest, such as allosteric sites on proteins.
- Relay has 3 candidates targeting solid tumors - 1 of which has progressed into a phase 1 dose escalation trial - and may be able to generate many more.
- Strong management and board, brains trust of biochemists, physicists and drug development experts, and funding makes Relay an attractive investment opportunity.
- Shares are currently available at $35.3 - a 20% discount to the post-IPO close price of $44.
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Investment Thesis
Relay Therapeutics share price performance since IPO
(Source: TradingView)
Investors looking to place a bet on the next big biotech trend may want to take a close look at Relay Therapeutics (RLAY), a novel drug discovery startup with a strong management team, access to one of the world's most powerful supercomputers, and nearly $1 billion in funding, having completed the third-largest biotech IPO of all time in mid-July.
Relay's upsized IPO raised $400 million after the company sold 20 million shares for $20 - above the marketed range of $18-19 - to complement the $520 million it had already raised across 3 private funding rounds from backers including the SoftBank Vision Fund, Google Ventures, the Biotechnology Value Fund, and Third Rock Ventures. Shares traded up by 75% on the first day of trading, closing at $44, but have declined slightly and are currently available at a price of $35.3.
Relay's high-profile backers are supporting a brains trust comprising computational chemists, biophysicists, data scientists and drug development experts with access to the Anton 2 supercomputer developed by D.E. Shaw Research, whose founder, David E. Shaw, is also one of Relay's founders, alongside Matthew Jacobson, a faculty member in the Department of Pharmaceutical Chemistry at the University of California, Dorothee Kern, Professor of Biochemistry at Brandeis University, and Mark Murcko, a Senior Lecturer at MIT and formerly chief technology officer at Vertex Pharmaceuticals (VRTX).
