Relay Therapeutics Reports Third Quarter 2020 Financial Results

Rhea-AI Summary

Relay Therapeutics, Inc. (Nasdaq: RLAY) reported its third quarter 2020 financial results, noting significant progress following its IPO in July. The company has approximately $713 million in cash, expected to fund operations into 2023. R&D expenses increased to $24 million, largely due to higher personnel costs and clinical trial support. General and administrative expenses rose to $12 million, reflecting increased personnel costs. The net loss for the quarter was $36 million, with a net loss per share of $3.00, an improvement from $5.53 in Q3 2019.

Positive

• Cash and cash equivalents of approximately $713 million, sufficient to fund operations into 2023.
• First patient dosed with RLY-4008, enhancing pipeline progress.

Negative

• Increased net loss of $36 million for Q3 2020 compared to $20 million in Q3 2019.
• R&D expenses rose by $6 million year-over-year, indicating increased operational costs.

CAMBRIDGE, Mass., Nov. 12, 2020 (GLOBE NEWSWIRE) -- Relay Therapeutics, Inc. (Nasdaq: RLAY), a clinical-stage precision medicine company transforming the drug discovery process by leveraging unparalleled insights into protein motion, today reported third quarter 2020 financial results.

“In our first quarter as a public company, I am proud of our team’s unwavering focus on bringing our medicines to patients,” said Sanjiv Patel, M.D., president and chief executive officer of Relay Therapeutics. “In July, we completed and closed our initial public offering. In September, we dosed the first patient with our second targeted medicine, RLY-4008, the only selective small molecule inhibitor of FGFR2 in clinical development. We look forward to providing updates across our pipeline in 2021.”

Second Quarter Financial Highlights

Cash and Cash Equivalents: Cash, cash equivalents and investments totaled approximately $713 million as of September 30, 2020, which includes the net proceeds of $425 million from the Company’s initial public offering, compared to $356 million as of December 31, 2019. The Company expects its current cash and cash equivalents will be sufficient to fund its current operating plan into 2023.

R&D Expenses: Research and development expenses were $24 million for the third quarter of 2020, as compared to $18 million for the third quarter of 2019. This increase was primarily due to higher personnel costs, including an increase of $4.6 million in non-cash stock-based compensation expenses related to the accounting treatment of certain options granted in the first quarter of 2020, as well as an increase in costs to support our clinical trials, offset in part by a decrease in outside and consulting services for our pre-clinical candidates.

G&A Expenses: General and administrative expenses were $12 million for the third quarter of 2020, as compared to $4 million for the third quarter of 2019. This increase was primarily due to higher personnel costs, including an increase of $6.0 million in non-cash stock-based compensation expenses related to the accounting treatment of certain options granted in the first quarter of 2020, to support our infrastructure.

Net Loss: Net loss was $36 million for the third quarter of 2020, or a net loss per share of $3.00, as compared to a net loss of $20 million for the third quarter of 2019, or a net loss per share of $5.53.

About Relay Therapeutics

Relay Therapeutics (Nasdaq: RLAY) is a clinical-stage precision medicines company transforming the drug discovery process with the goal of bringing life-changing therapies to patients. Built on unparalleled insights into protein motion and how this dynamic behavior relates to protein function, Relay Therapeutics aims to effectively drug protein targets that have previously been intractable, with an initial focus on enhancing small molecule therapeutic discovery in targeted oncology. The Company’s Dynamo platform integrates an array of leading-edge experimental and computational approaches to provide a differentiated understanding of protein structure and motion to drug these targets. For more information, please visit www.relaytx.com or follow us on Twitter.

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, implied and express statements regarding the Company’s strategy, business plans and focus; the progress and timing of updates on the clinical development of the programs across the Company’s portfolio; and expectations regarding our cash runway and the use of capital, expenses, future accumulated deficit and other financial results in the future. The words "may," “might,” "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," “expect,” "estimate," “seek,” "predict," “future,” "project," "potential," "continue," "target" and similar words or 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 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, risks associated with: the impact of COVID-19 on countries or regions in which we have operations or do business, as well as on the timing and anticipated results of our clinical trials, strategy and future operations; the delay of any current or planned clinical trials or the development of the Company’s drug candidates, including, but not limited to, RLY-1971 and RLY-4008; the risk that the results of our clinical trials may not be predictive of future results in connection with future clinical trials; the Company’s ability to successfully demonstrate the safety and efficacy of its drug candidates; the timing and outcome of the Company’s planned interactions with regulatory authorities; and obtaining, maintaining and protecting its intellectual property.  These and other risks and uncertainties are described in greater detail in the section entitled "Risk Factors" in Relay Therapeutics’ most recent Quarterly Report on Form 10-Q as well as any subsequent filings with the Securities and Exchange Commission. In addition, any forward-looking statements represent Relay Therapeutics' views only as of today 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. No representations or warranties (expressed or implied) are made about the accuracy of any such forward-looking statements.

Contact:
Pete Rahmer, Head of Investor Relations and Communications
617-322-0715
prahmer@relaytx.com

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

Relay Therapeutics, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except share and per share data)
(Unaudited)

	Three Months Ended September 30,								Nine Months Ended September 30,
	2020				2019				2020				2019
Operating expenses:
Research and development expenses	$	24,376			$	18,256			$	67,739			$	47,899
General and administrative expenses		12,231				3,652				23,045				10,316
Total operating expenses		36,607				21,908				90,784				58,215
Loss from operations		(36,607	)			(21,908	)			(90,784	)			(58,215	)
Other income (expense):
Interest income		534				2,236				3,104				6,881
Other expense		(5	)			(1	)			(8	)			(58	)
Total other income (expense), net		529				2,235				3,096				6,823
Net loss	$	(36,078	)		$	(19,673	)		$	(87,688	)		$	(51,392	)
Deemed dividend resulting from extinguishment upon modification   of series C preferred stock		(177,789	)			—				(177,789	)			—
Net loss attributable to common stockholders	$	(213,867	)		$	(19,673	)		$	(265,477	)		$	(51,392	)
Net loss attributable to common stockholders per share, basic and   diluted	$	(3.00	)		$	(5.53	)		$	(9.92	)		$	(15.46	)
Weighted average shares of common stock, basic and diluted		71,248,846				3,556,303				26,766,687				3,323,456

Relay Therapeutics, Inc.
Selected Condensed Consolidated Balance Sheet Data
(In thousands)
(Unaudited)

	September 30, 2020			December 31, 2019
Cash, cash equivalents and investments	$	713,466		$	355,816
Working capital (1)		706,184			348,550
Total assets		751,681			393,068
Total liabilities		38,156			35,725
Convertible preferred stock		---			537,781
Total stockholders’ equity (deficit)		713,525			(180,438)
Restricted cash		878			878
(1)   Working capital is defined as current assets less current liabilities.

 

FAQ

What were Relay Therapeutics' Q3 2020 earnings results?

Relay Therapeutics reported a net loss of $36 million for Q3 2020, or $3.00 per share.

What is the cash position of Relay Therapeutics after Q3 2020?

As of September 30, 2020, Relay Therapeutics had approximately $713 million in cash and cash equivalents.

What key developments occurred in Q3 2020 for Relay Therapeutics?

The company dosed the first patient with RLY-4008 and successfully completed its initial public offering.

How have Relay Therapeutics' R&D expenses changed in Q3 2020?

R&D expenses increased to $24 million in Q3 2020, up from $18 million in Q3 2019.