Relay Therapeutics (RLAY – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Robert Burns from H.C. Wainwright remains neutral on the stock and has a $33.00 price target.
Robert Burns has assigned a Buy rating to Relay Therapeutics based on a variety of factors. The company’s drug, Lirafugratinib (RLY-4008), has shown promise in treating FGFR2-altered solid tumors, as presented in the Phase 1/2 ReFocus trial. The drug has demonstrated an overall response rate (ORR) of 35%, 24%, and 13% in FGFR2 fusion or rearrangement positive, FGFR2 amplified, and FGFR2 mutated patients, respectively. Moreover, it has displayed a generally benign safety profile. Given these results, Burns believes Lirafugratinib could be used in a tumor-agnostic manner, leading him to raise the projected approval probability for the drug from 25% to 55%.
Furthermore, Relay Therapeutics has revised its regulatory strategy for Lirafugratinib due to the Inflation Reduction Act. The company will now prioritize filing an initial New Drug Application (NDA) for Lirafugratinib in the broader tumor-agnostic space. This decision, along with the estimated number of FGFR2 fusion-positive and FGFR2-amplified solid tumor patients, suggests a significant potential market for the drug. Considering these factors and the postponement of commercial readiness for Lirafugratinib in Cholangiocarcinoma (CCA), Burns has reaffirmed the Buy rating and slightly raised the 12-month price target from $30 to $33.
Burns covers the Healthcare sector, focusing on stocks such as BioNTech SE, ADC Therapeutics, and Nurix Therapeutics. According to TipRanks, Burns has an average return of -36.8% and a 14.40% success rate on recommended stocks.
In another report released on October 13, JMP Securities also reiterated a Buy rating on the stock with a $24.00 price target.
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Relay Therapeutics (RLAY) Company Description:
Relay Therapeutics Inc is a precision medicines company focused on enhancing small molecule therapeutic discovery in targeted oncology. Its pipeline products include RLY-1971 and RLY-4008 and among others.
Read More on RLAY:
- Relay: Lirafugratinib data show durable response across multiple FGFR2 tumors
- Relay Therapeutics Announces Initial RLY-4008 (lirafugratinib) Data Demonstrating Durable Responses Across Multiple FGFR2-Altered Solid Tumors
- JPMorgan biotech analysts hold an analyst/industry conference call
- Relay Therapeutics to Present Clinical Data on RLY-4008 in Advanced FGFR2-Altered Solid Tumors at 2023 AACR-NCI-EORTC International Conference on Molecular Targets and Cancer Therapeutics
