Relay Therapeutics Gains Analyst Backing as Pipeline Shows Promise in Competitive Cancer Drug Landscape
In a move highlighting growing confidence in its clinical pipeline, Relay Therapeutics (NASDAQ: RLAY) received a significant vote of support from Oppenheimer & Co. The investment firm upgraded the biotech's stock from 'Perform' to 'Outperform' on January 26, assigning a $14 price target.
The upgrade centers on the potential of Relay's lead asset, zovegalisib, a mutant-selective PI3Kδ inhibitor. Oppenheimer analysts pointed to the upcoming readout from Celcuity's VIKTORIA-1 trial for gedatolisib as a potential positive catalyst for the entire class of mutant-selective inhibitors. The firm anticipates that even if the VIKTORIA-1 results are modest, they could set a benchmark that zovegalisib is well-positioned to exceed, given its emerging profile.
That profile was bolstered by data presented at the 2025 San Antonio Breast Cancer Symposium. Interim results from the ReDiscover trial showed that zovegalisib, combined with fulvestrant, achieved a median progression-free survival (PFS) of 11.4 months in heavily pre-treated, second-line patients. The consistency of response across patient subgroups was noted as a particular strength.
"This isn't just about one drug; it's about validating Relay's entire Dynamo platform," said Dr. Anya Sharma, a biotech equity analyst at a rival firm. "Their computational approach to drugging moving protein targets is showing tangible clinical results. The Oppenheimer call reflects a belief that the market is undervaluing this platform's output."
Relay Therapeutics operates as a clinical-stage precision medicine company, leveraging its proprietary Dynamo platform to target proteins that have historically been difficult to drug, with a focus on oncology and genetic diseases.
However, not all observers share the unbridled optimism. Mark Devlin, a portfolio manager known for his skeptical stance on early-stage biotech, offered a sharper critique: "Let's pump the brakes. An 11.4-month PFS in a subset is a data point, not a revolution. The PI3K space is littered with candidates that showed early promise only to flame out on toxicity or later-stage efficacy. Upgrades based on what a *competitor's* trial *might* do feels like speculative domino-setting, not solid fundamental analysis."
Elena Rodriguez, a breast cancer oncologist at a major research hospital, provided clinical context: "For patients who have exhausted standard options, new mechanisms are crucial. The mutant-selectivity of drugs like zovegalisib aims to improve efficacy while reducing the class-wide toxicities seen with earlier PI3K inhibitors. The ReDiscover data is encouraging, but we need larger confirmatory studies to understand its full place in therapy."
Disclosure: This is an independent financial news analysis. The author holds no positions in the mentioned securities.