Relay Therapeutics price target lowered to $10 from $30 at Guggenheim

Guggenheim lowered the firm’s price target on Relay Therapeutics (RLAY) to $10 from $30 and keeps a Buy rating on the shares. Relay reported Q1 financial results and confirmed their lead asset, RLY-2608, is set to enter Phase 3 in the ReDiscover-2 Phase 3 trial in 2L PIK3CAmut HR+/HER2- mBC in mid-year, the analyst noted. Relay previously announced a strategic restructuring effort in April, including an 80% reduction in overall research spend accompanied by a 70 person reduction in force, trimming its research-stage programs down to one in order to prioritize its most promising and advanced clinical programs, notes the analyst, who is updating the firm’s model to reflect these updates and also the previously announced out-license of RLY-4008 with Elevar Therapeutics.