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Relay Therapeutics to Offer $300M in Common Stock; Inks CDx Deal With Foundation Medicine

NEW YORK – Relay Therapeutics on Monday said it is offering $300 million of shares of its common stock in an underwritten public offering.

The Cambridge, Massachusetts-based firm will also grant underwriters a 30-day option to purchase an additional 15 percent of the common stock put up in the public offering. It has yet to price the offering.

All shares in the proposed offering will be sold by Relay Therapeutics. Goldman Sachs, JP Morgan, Cowen, and BofA Securities are acting as bookrunning managers for the offering.

According to a filing with the US Securities and Exchange Commission, Relay estimates net proceeds from the offering to be around $284.5 million, or approximately $327.3 million if the underwriters exercise their option to purchase the additional shares.

The proceeds from the public offering will support Relay's efforts to develop precision medicines for cancer and genetic diseases. The company uses its Dynamo platform to identify therapeutic approaches against previously undruggable protein targets. At the European Society for Medical Oncology Congress this week, the company released data on its investigational FGFR2 inhibitor RLY-4008 showing that it shrank tumors in 15 out of 17, or 88 percent, of patients with FGFR2 fusion-positive bile duct cancer who had not received a prior FGFR inhibitor.

In a separate announcement, Relay Therapeutics said it is working with Foundation Medicine to develop a companion diagnostic for RLY-4008 using the FoundationOne CDx next-generation sequencing panel. If the drug and test receive regulatory approval in the future, FoundationOne CDx would identify cholangiocarcinoma patients with FGFR2 fusions and select rearrangements who are eligible for RLY-4008.