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RLAY — Relay Therapeutics News Story

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Relay Therapeutics Q2 revenue misses estimates on higher R&D expenses; net loss widens

Relay Therapeutics Q2 revenue misses estimates on higher R&D expenses; net loss widens


Overview

  • US precision medicine developer's Q2 revenue declined and missed analyst expectations

  • Net loss for Q2 widened and missed analyst expectations

  • Company raised $316 mln in public offering, boosting cash to $911 mln


Outlook

  • Company expects to initiate Phase 3 1L breast cancer trial in early 2027, subject to regulatory feedback

  • Enrollment update for ongoing Phase 3 ReDiscover-2 trial in 2L breast cancer expected by year-end 2026

  • Company expects current cash position to fund operations into 2029


Result Drivers

  • HIGHER R&D SPEND - Co said increased research and development expenses were driven by higher costs across ongoing clinical trials for zovegalisib

  • REVENUE DECLINE - Co attributed Q2 revenue to its Exclusive License Agreement with Elevar Therapeutics; no additional drivers cited

  • LEGAL COSTS - Co said higher general and administrative expenses were primarily due to increased legal expenses


Company press release: ID:nGNX6QJhlf


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Miss

$350,000

$872,730 (11 Analysts)

Q2 Loss Per Share

$0.41

Q2 Net Loss

Miss

$83.71 mln

$74.20 mln (11 Analysts)

Q2 Loss Per Basic Share

$0.41

Q2 Operating Expenses

$91.17 mln

Q2 Operating Income

-$90.82 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the biotechnology & medical research peer group is "buy"

  • Wall Street's median 12-month price target for Relay Therapeutics, Inc. is $26.50, about 34.6% above its August 5 closing price of $19.69


Reuters Recommended Reads

  • Aug 6 - Monte Rosa Therapeutics Q2 revenue drops, net loss widens on higher R&D

  • Aug 6 - Compass Therapeutics Q2 net loss widens on higher R&D and G&A costs

  • Aug 4 - Pathos AI to license experimental breast cancer drug from China's Jiangsu Alphamab Biopharmaceutical


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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