CAMBRIDGE, MA—Sanjiv Patel, the President and CEO of Relay Therapeutics, Inc. (NASDAQ:RLAY), has recently sold 100,000 shares of the company's common stock, amounting to a total transaction value of $500,000. The shares were sold at a price of $5.00 each, notably higher than the current trading price of $4.20. The stock has declined nearly 10% in the past week and 56% over the last year. This transaction was executed by the Patel Family Irrevocable Trust of 2019, under a Rule 10b5-1 trading plan adopted in August 2024.
Following this sale, Patel holds 574,548 shares indirectly through the trust, while his direct holdings total 766,130 shares. Additionally, Patel has indirect ownership of 687,355 shares through the SSP Irrevocable Trust of 2020. These trusts are managed by independent trustees for the benefit of Patel's family members, and he disclaims beneficial ownership of these securities.
This transaction highlights Patel's ongoing management of his holdings in Relay Therapeutics, a $711 million market cap company involved in the development of biological products. According to InvestingPro analysis, the stock appears undervalued, with analysts setting price targets between $16 and $30. InvestingPro subscribers have access to 10 additional key insights about RLAY's financial health and market position.
In other recent news, Relay Therapeutics has experienced noteworthy developments with its drug trials and financial position. Earnings data reveals the company's strong financial position, with more cash than debt on its balance sheet. BofA Securities recently reaffirmed a Buy rating for Relay Therapeutics, highlighting the potential of RLY-2608, a treatment for breast cancer, to achieve peak sales surpassing $1 billion.
The company also finalized a global licensing agreement with Elevar Therapeutics for its FGFR2 inhibitor, lirafugratinib, which could yield up to $75 million in upfront and regulatory milestone payments, and an additional $425 million in commercial milestone payments.
H.C. Wainwright, Leerink Partners, and other analyst firms have made adjustments to their price targets for Relay Therapeutics, while Oppenheimer downgraded their rating due to concerns about the selectivity profile of RLY-2608.
The U.S. Food and Drug Administration approved Roche's Itovebi for a specific breast cancer treatment, which includes Relay Therapeutics' drug candidate. This approval was based on the successful outcomes of the Phase 3 INAVO120 trial.
Lastly, Relay Therapeutics' Phase 1 ReDiscover trial demonstrated promising results, leading to adjustments in analysts' outlooks. These are all recent developments that have taken place within the company.
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