Relay Therapeutics, Inc. (RLAY)·Q3 2024 Earnings Summary

Executive Summary

• Q3 2024 was defined by clinical momentum (positive interim RLY-2608 data) and a strengthened balance sheet; financials featured $0 revenue, net loss of $88.1M and EPS of $(0.63) as the company invests ahead of pivotal execution .
• Management highlighted 9.2-month median PFS and a 33% ORR (53% for kinase mutations) for RLY-2608 + fulvestrant at RP2D, and plans to initiate a 2L pivotal trial in 2025, framing this as a key value-creation catalyst .
• Cash, cash equivalents and investments reached $839.6M, with runway guided into 2H 2027; the uplift reflected a $230M September follow-on and a $50M annual savings plan (15% workforce reduction) to tilt toward late-stage development .
• Estimate benchmarking was not available due to S&P Global rate limits; however, the core stock catalysts near term are SABCS disclosure in December and 2025 pivotal trial initiation for RLY-2608, alongside partnering steps for lirafugratinib (subsequently licensed to Elevar on Dec 3) .

What Went Well and What Went Wrong

• What Went Well

  • Clinically meaningful RLY-2608 doublet efficacy at RP2D: median PFS 9.2 months across all mutations (10.3 months in kinase mutations) and 33% ORR (53% kinase), with favorable tolerability (only one Grade 3 hyperglycemia at RP2D) .
  • Strategic clarity and financing: plan to initiate a 2L pivotal trial in 2025 and cash runway extended into 2H 2027; CEO emphasized ability to fully fund through top-line with existing cash .
  • Portfolio focus and cost discipline: $50M annualized savings and ~15% workforce reduction to support development focus; triplet regimens advancing (ribociclib dose expansion expected 1H 2025; atirmociclib trial initiation by YE 2024) .
  • Quote: “Based on these data, we are preparing to initiate a pivotal trial in 2L breast cancer in 2025, which we expect to be able to fully fund through top-line readout with our existing cash on hand.” – CEO Sanjiv Patel .

• What Went Wrong

  • No revenue in Q3 vs $25.2M in Q3’23, reflecting the absence of collaboration milestone recognition that boosted the prior-year period .
  • Net loss widened YoY to $88.1M (from $65.7M) and EPS to $(0.63) (from $(0.54)), driven by the lack of revenue and continued R&D investment despite some prioritization .
  • Lirafugratinib regulatory path requires staged filings (first CCA NDA, then tumor-agnostic sNDA) and the company sought a commercialization partner to maintain portfolio focus (partnership subsequently announced post-quarter) .

Financial Results

• Income statement and cash metrics

• Year-over-year comparison (Q3 only)

• KPIs and operating context

Notes: Relay reports no product revenue; revenue variability reflects collaboration and milestone timing, not commercial activity .

Guidance Changes

Earnings Call Themes & Trends

Note: A Q3’24 earnings call transcript was not available in our document set; themes reflect company disclosures in Q1/Q2/Q3 communications.

Management Commentary

• Strategic focus: “Based on these data, we are preparing to initiate a pivotal trial in 2L breast cancer in 2025, which we expect to be able to fully fund through top-line readout with our existing cash on hand.” – Sanjiv Patel, M.D., President & CEO .
• Portfolio prioritization: Company will seek a global commercialization partner for lirafugratinib to maintain focus on remainder of the portfolio; FDA suggested staged filings (CCA then tumor-agnostic) .
• Operating model shift: Streamlined research organization to support upcoming pivotal study and 2025 clinic entries; ~$50M annual savings and ~15% workforce reduction .

Q&A Highlights

• A Q3 2024 earnings call transcript was not available in our document corpus; therefore, no Q&A details were reviewable. The themes and clarifications above are drawn from the press release and 8-K disclosures .

Estimates Context

• We attempted to retrieve S&P Global consensus for revenue and EPS for Q3 2024 and the prior two quarters, but could not due to rate limits. As a result, we cannot quantify beats/misses versus Street for this quarter (will update upon retrieval) [GetEstimates errors].
• Management did not issue formal revenue/expense guidance; the key quantitative anchor for forward modeling is cash runway into 2H 2027 and the 2025 pivotal start for RLY-2608 .

Key Takeaways for Investors

• 2025 RLY-2608 pivotal start is the main catalyst; interim data (PFS/ORR and tolerability) de-risk the clinical thesis and support the 2L study design, with additional visibility at SABCS in December .
• Balance sheet sufficiently capitalized (cash ~$840M; runway into 2H 2027) post $230M follow-on and $50M annualized savings; management asserts ability to fund pivotal through top-line readout .
• Triplet regimens aim to expand the opportunity (front-line setting) with ribociclib dose expansion planned for 1H 2025 and atirmociclib program initiating YE 2024—watch for safety/combination tolerability updates .
• Lirafugratinib strategy pivoted to partner-led path after FDA suggested a CCA-first NDA; subsequent Elevar deal (Dec 3) should reduce Relay’s capital burden and sharpen focus on PI3Kα programs .
• Financial optics YoY are noisy due to collaboration revenue timing; Q3’24 had $0 revenue vs $25.2M in Q3’23; investors should focus on operating discipline and pipeline milestones rather than near-term P&L variability .
• Near-term trading setup: December SABCS data visibility and any pipeline/regulatory disclosures could drive sentiment; medium-term thesis rests on executing the RLY-2608 pivotal and demonstrating durable, tolerable combination regimens .

Citations: 8-K and Exhibit 99.1 PR for Q3 2024 ; Q3 2024 press release and financial tables ; Q2 2024 press release and tables ; Q1 2024 8-K and tables ; September 9, 2024 RLY-2608 data PR ; November 7, 2024 events PR ; December 3, 2024 Elevar deal PR .