Jan. 26 at 11:25 AM
Oppenheimer⬆️
$RLAY: We are upgrading shares of Relay Therapeutics to Outperform (prior Perform) — with a
$14 PT — because we believe that gedatolisib's upcoming VIKTORIA-1 readout could be a tailwind for mutant-selective inhibitors like zovegalisib.
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$CELC $NVS ]
Bottom line: We believe VIKTORIA-1 will underperform expectations, and may even fail. We think anything less than "teenage" mPFS for the gedatolisib triplet would create a beatable bar for Relay, who is developing a competing triplet with zovegalisib.
We think gedatolisib looks a lot like everolimus, and everolimus underperforms in PI3K.
Relay shares have struggled since October when VIKTORIA-1's wild-type cohort came out and exceeded expectations. We believe that duplicating that success in PI3K-mutant patients will be more
challenging for gedatolisib, especially given the recent precedent set by alpelisib in the EPIK-B5 trial (7.4-months mPFS).
