Will Early Zovegalisib Data in HR+/HER2- Breast Cancer Change Relay Therapeutics' (RLAY) Narrative?

• Relay Therapeutics recently reported subset interim data from its ReDiscover first-in-human trial, showing encouraging efficacy and tolerability for zovegalisib (RLY-2608) in heavily pre-treated HR+/HER2- advanced breast cancer patients, presented at the 2025 San Antonio Breast Cancer Symposium.
• An interesting takeaway is that zovegalisib’s activity appeared broadly consistent across challenging subgroups, including patients with prior SERD exposure and ESR1 mutations, while maintaining a manageable safety profile.
• We’ll now explore how this early but encouraging progression-free survival signal in a heavily pre-treated population shapes Relay Therapeutics’ investment narrative.

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What Is Relay Therapeutics' Investment Narrative?

To own Relay Therapeutics, you have to believe its precision oncology platform can convert promising early science into approved drugs before the cash burn and ongoing losses become too heavy. The new zovegalisib data at SABCS 2025 reinforces that core thesis, because the progression free survival and response rates in a heavily pre treated population help validate Relay’s structure based drug design story and support the ongoing Phase 3 ReDiscover 2 trial as a key near term catalyst. With the stock already up strongly this year and trading at a discount to consensus targets, the update looks incrementally positive rather than thesis changing, but it does slightly improve the odds that zovegalisib remains the company’s main value driver. The flip side is that the business is still unprofitable, cash intensive and highly dependent on this program’s clinical and regulatory path.

However, one risk in particular could matter far more than the latest efficacy data. In light of our recent valuation report, it seems possible that Relay Therapeutics is trading beyond its estimated value.

Exploring Other Perspectives

With one Simply Wall St Community fair value estimate at US$13.90, opinions are concentrated, yet you can weigh that against Relay’s sustained losses and trial dependence to judge how future outcomes might diverge.

Explore another fair value estimate on Relay Therapeutics - why the stock might be worth as much as 73% more than the current price!

Build Your Own Relay Therapeutics Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Relay Therapeutics research is our analysis highlighting 1 key reward and 4 important warning signs that could impact your investment decision.
• Our free Relay Therapeutics research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Relay Therapeutics' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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