Relay Therapeutics Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

Relay Therapeutics (Nasdaq: RLAY), a clinical-stage precision medicine company, has announced a proposed public offering of $200 million of common stock shares. The company plans to grant underwriters a 30-day option to purchase up to an additional 15% of the offered shares. Goldman Sachs & Co. , TD Cowen, Stifel, and BofA Securities are acting as joint book-running managers, with Raymond James as co-manager. The offering is subject to market conditions, and its completion is not guaranteed. Shares will be offered through an effective shelf registration statement previously filed with the SEC. A preliminary prospectus supplement and accompanying prospectus will be filed and made available to potential investors.

Positive

• Potential to raise $200 million in capital through the public offering
• Option for underwriters to purchase additional 15% of shares, potentially increasing capital raised
• Involvement of reputable financial institutions as joint book-running managers

Negative

• Potential dilution of existing shareholders' ownership
• Uncertainty regarding the completion and final terms of the offering
• Market conditions may affect the success and pricing of the offering

Financial Analyst

Relay Therapeutics' proposed $200 million public offering of common stock is a significant move to bolster its financial position. This capital raise could provide important funding for the company's ongoing clinical trials and drug discovery efforts. However, it's important to note that this will likely result in dilution for existing shareholders. The additional 15% option for underwriters could further impact dilution if exercised.

The involvement of major underwriters like Goldman Sachs and BofA Securities lends credibility to the offering, potentially attracting institutional investors. This could improve liquidity and trading volume for RLAY stock. Investors should closely monitor the pricing and demand for this offering, as it may indicate market sentiment towards Relay's future prospects in the competitive precision medicine landscape.

Biotech Industry Expert

This public offering signals Relay Therapeutics' need for substantial capital to advance its pipeline of precision medicines. As a clinical-stage company, Relay is likely burning through cash to fund its innovative computational and experimental drug discovery platform. The $200 million raise, if successful, could extend the company's runway and support multiple clinical programs.

Investors should consider the potential impact on Relay's cash burn rate and how long this infusion might sustain operations. It's important to evaluate the progress of Relay's lead candidates and the potential market opportunity for their precision medicine approach. While the offering may pressure the stock in the short term, it could position Relay for long-term success if their platform yields promising clinical results.

Market Research Analyst

The timing of Relay Therapeutics' offering is intriguing, coming amidst a challenging market for biotech stocks. This move suggests confidence in their pipeline and technology platform, but also reflects the ongoing need for capital in the sector. Investors should consider how this offering compares to recent trends in biotech financing and whether it indicates a potential thawing of the IPO and follow-on offering market.

The shelf registration approach allows Relay flexibility in timing and sizing the offering based on market conditions. This could be advantageous if executed well. However, the success of this offering may hinge on Relay's ability to articulate a compelling investment thesis around their computational drug discovery approach and near-term catalysts. Monitoring investor reception to this offering could provide insights into broader market sentiment towards innovative, early-stage biotech companies.

CAMBRIDGE, Mass., Sept. 09, 2024 (GLOBE NEWSWIRE) -- Relay Therapeutics, Inc. (Nasdaq: RLAY), a clinical-stage precision medicine company transforming the drug discovery process by combining leading-edge computational and experimental technologies, announced today that it has commenced an underwritten public offering of $200 million of shares of its common stock. Relay Therapeutics also intends to grant the underwriters a 30-day option to purchase up to an additional fifteen percent (15%) of the shares of common stock offered in the public offering. All of the shares in the proposed offering are to be sold by Relay Therapeutics.

Goldman Sachs & Co. LLC, TD Cowen, Stifel and BofA Securities are acting as joint book-running managers for the proposed offering. Raymond James is acting as co-manager. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

The shares of common stock are being offered by Relay Therapeutics pursuant to an effective shelf registration statement that was previously filed with the U.S. Securities and Exchange Commission (SEC). A preliminary prospectus supplement and accompanying prospectus relating to and describing the terms of the offering will be filed with the SEC and may be obtained, when available, from: Goldman Sachs & Co. LLC, Prospectus Department, 200 West Street, New York, NY 10282, telephone: 1-866-471-2526, facsimile: 212-902-9316 or by email at Prospectus-ny@ny.email.gs.com; TD Securities (USA) LLC, 1 Vanderbilt Avenue, New York, NY 10017, by telephone at (855) 495-9846 or by email at TD.ECM_Prospectus@tdsecurities.com; Stifel, Nicolaus & Company, Incorporated, Attention: Syndicate, One Montgomery Street, Suite 3700, San Francisco, California 94104, by telephone at 415-364-2720 or by email at syndprospectus@stifel.com; BofA Securities, NC1-022-02-25, 201 North Tryon Street, Charlotte, North Carolina 28255-0001, Attention: Prospectus Department or by email at dg.prospectus_requests@bofa.com; or by accessing the SEC’s website at www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Relay Therapeutics

Relay Therapeutics is a clinical-stage precision medicine company transforming the drug discovery process by combining leading-edge computational and experimental technologies with the goal of bringing life-changing therapies to patients. As the first of a new breed of biotech created at the intersection of complementary techniques and technologies, Relay Therapeutics aims to push the boundaries of what’s possible in drug discovery. Its Dynamo^® platform integrates an array of leading-edge computational and experimental approaches designed to drug protein targets that have previously been intractable or inadequately addressed. Relay Therapeutics’ initial focus is on enhancing small molecule therapeutic discovery in targeted oncology and genetic disease indications.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, without limitation, statements regarding Relay Therapeutics’ anticipated public offering. The words “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.

Any forward-looking statements in this press release, such as the intended offering terms, are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and important factors that may cause actual events or results to differ materially from those expressed or implied by any forward-looking statements contained in this press release, including, without limitation, uncertainties related to market conditions and the completion of the public offering on the anticipated terms or at all. These and other risks and uncertainties are described in greater detail in the section entitled “Risk Factors” in Relay Therapeutics’ most recent annual report on Form 10-K and quarterly report on Form 10-Q filed with the SEC, as well as discussions of potential risks, uncertainties, and other important factors in Relay Therapeutics’ other filings with the SEC, including those contained or incorporated by reference in the preliminary prospectus supplement and accompanying prospectus related to the proposed public offering to be filed with the SEC. Any forward-looking statements contained in this press release represent Relay Therapeutics’ views only as of the date hereof and should not be relied upon as representing its views as of any subsequent date. Relay Therapeutics explicitly disclaims any obligation to update any forward-looking statements, except as required by law. No representations or warranties (expressed or implied) are made about the accuracy of any such forward-looking statements.

Contact:
Megan Goulart
617-545-5526
mgoulart@relaytx.com

Media:
Dan Budwick
1AB
973-271-6085
dan@1abmedia.com

FAQ

What is the size of Relay Therapeutics' (RLAY) proposed public offering?

Relay Therapeutics (RLAY) has announced a proposed public offering of $200 million of common stock shares.

Who are the underwriters for Relay Therapeutics' (RLAY) public offering?

Goldman Sachs & Co. , TD Cowen, Stifel, and BofA Securities are acting as joint book-running managers, with Raymond James as co-manager for Relay Therapeutics' (RLAY) public offering.

What additional option is Relay Therapeutics (RLAY) granting to underwriters?

Relay Therapeutics (RLAY) intends to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares offered in the public offering.

How can investors access information about Relay Therapeutics' (RLAY) stock offering?

Investors can access information through a preliminary prospectus supplement and accompanying prospectus to be filed with the SEC, or by contacting the joint book-running managers directly.