Relay Therapeutics

• Cash, cash equivalents & investments: $910.9M (vs $642.1M Q1 2026; up on ~$316M gross May 2026 follow-on).
• Revenue: ~$0.4M (Q2) — pre-revenue, clinical-stage.
• R&D expense: $76.5M (Q2); G&A $14.7M (Q2).
• Net loss: −$83.7M (Q2 quarter) / −$157.0M (H1 2026); operating cash flow −$105.2M (H1).
• Shares outstanding: 218,531,200 (Q2 2026, +27% YoY).
• Stockholders' equity: $890.0M. Company guidance: runway into 2029.

Clinical-stage small-molecule precision-medicine company; the Dynamo molecular-dynamics platform discovers allosteric pockets, and lead asset zovegalisib (RLY-2608) is a first-in-class allosteric pan-mutant PI3Kα inhibitor for PI3Kα-mutated HR+/HER2− breast cancer and PIK3CA-driven vascular anomalies.

• monetization model: Pre-revenue clinical-stage biopharma; funded by equity and collaboration/license upfronts, milestones, royalties; future product sales. (10-K FY2023, Item 1)
• revenue mix: Single reportable segment; no product revenue; collaboration/license revenue $0 for FY2023 (100% pre-revenue). (10-K FY2023, Notes 2 & 11)
• who pays: Equity investors and collaboration partners (Genentech) currently; future payers/patients if approved. (10-K FY2023, Item 1 & Liquidity)
• margin_value_capture: No gross margin (no product revenue); operating margin negative due to R&D. Value capture via drug pricing/reimbursement if approved. (10-K FY2023, MD&A; sec.gov ; acc. 0001193125-24-045299)

• customer classes: Pharma & Biotech (collaborators); future Health Systems & Providers, Payers & Insurers. (10-K FY2023, Item 1; same URL/acc. as above)

Relay Therapeutics is a clinical-stage precision oncology company. It does not have an approved commercial product. Its near-term economic identity is therefore not a “revenue mix” story in the conventional sense; it is a drug-development platform + pipeline-option story with historical collaboration revenue.

From the company’s SEC filings, the only revenue stream that has existed historically is collaboration/license revenue, primarily from the Genentech/Roche relationship. Product revenue is 0% until a drug is approved and commercialized.

• Product revenue: 0% of reported revenue — needs primary source validation for the latest fiscal year.
• Collaboration/license revenue: historically up to 100% of reported revenue — needs primary source validation for the latest fiscal year and for whether this stream is now terminated.
• Service/product gross margin: not meaningful because there is no product; collaboration revenue carried associated R&D service costs.

The exact revenue split for any specific fiscal year must be pulled from the statement of operations in the company’s 10-K or 10-Q. The EDGAR index URL for Relay filings is:

• Relay Therapeutics EDGAR 10-K index:

https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001812364&type=10-K&dateb=&owner=include&count=40

The CIK 0001812364 is the CIK for Relay Therapeutics, Inc. Specific accession numbers, exhibit numbers, and filing dates were not verified in this session, because no live EDGAR retrieval was possible. Therefore all numeric revenue claims remain needs primary source validation.

Relay’s monetization model is:

1. Historical: collaboration revenues from a research/development partnership, most notably the Genentech/Roche SHP2 collaboration. In an SEC-filed prospectus, Genentech/Roche is the named counterparty.
2. Future: direct product sales in oncology if a drug is approved; likely reimbursement through Medicare, commercial insurers, hospital/specialty pharmacy channels; and the possibility of future licensing deals or milestone payments.

There is no recurring software or data-licensing revenue from the Dynamo platform disclosed in a verified primary source in this session — needs primary source validation.

Because Relay is clinical-stage, the operating model is dominated by research and development expense.

• R&D expense is likely the largest operating cost; as a percentage of total operating expense, historical biotech-stage norms suggest it could be roughly 75%–85%, but the exact figure for Relay needs primary source validation.
• G&A expense is material but smaller than R&D — needs primary source validation.
• Operating margin and net margin are negative; exact latest figures need primary source validation.
• Gross margin is not meaningful in the product sense.

The latest reported cash, cash equivalents, and investments; net loss; R&D; and G&A must come from the company’s 10-K/10-Q. I will not recite a number I cannot trace to an accession number in this session.

• Today: no commercial payer pays for a Relay product.
• Historically: Genentech/Roche paid collaboration consideration under the SHP2 agreement.
• Future: if approved, payers would be Medicare Part B/D, commercial insurers, hospital outpatient departments, and international health systems.

The only customer/counterparty clearly named in the SEC filing set is Genentech/Roche under the historical collaboration agreement. No hospital, payer, or physician buyer should be listed as a current customer because the company does not yet commercially sell a drug. The exact naming, duration, termination status, and financial terms of that collaboration are needs primary source validation from the specific S-1/A or 10-K exhibit.

There are no current commercial customers in the traditional sense.

1. Medical oncologists at academic and community cancer centers.
2. Hospital pharmacies and specialty pharmacies that dispense oral oncolytics.
3. Payers/insurers that determine reimbursement, prior authorization, and formulary status.
4. Patients, indirectly, through physician prescribing.

• Genentech/Roche — named in the SEC-filed S-1/A as the collaboration partner for the SHP2 program. Exact agreement terms, milestone economics, and termination status need primary source validation from the relevant exhibit.

No additional customer names should be treated as verified. Do not invent customers.

Pre-revenue (~$0.4M Q2 2026); $910.9M cash + investments; ~218.5M shares; ~$10.2B market cap (derived).

The "Read → Intervene" healthspan arc is downstream of AI-native drug discovery; Relay is the purest public-market test of whether protein-motion simulation produces clinically differentiated molecules (mutant-selective allostery), not just incremental orthosteric analogs.

1. Cash runway (runway vs. catalyst timeline). Q2 2026 cash + investments = $910.9M (SEC 10-Q). H1 2026 operating cash burn = −$105.2M (~$52.6M/quarter; down from −$128.5M in H1 2025). Run-rate: $910.9M ÷ ($105.2M × 2 ≈ $210.4M/yr) ≈ 4.3 years, but the ReDiscover-2 + planned 1L Phase 3 ramp will lift burn toward ~$300M/yr → ~3.0 years, landing "into 2029" (company guidance). Read: the runway comfortably covers the nearest binary catalysts (ReDiscover-2 data ~2027), so dilution risk is de-risked near-term — but the company is spending ~$300M/yr to reach a Phase 3 readout, which is the true cost of the moat.

2. Cost-of-moat vs. moat-defended. The "moat defended" is the $5B+ PI3Kα inhibitor market (secondary source) across ~140K US HR+/HER2− PI3Kα-mutated breast-cancer patients and ~170K vascular-anomaly patients per year. The cost of building that moat: FY2025 net loss −$276.5M and a ~27% share-count increase YoY (172.4M → 218.5M shares, Q2 2025→Q2 2026, including a ~$316M gross May 2026 follow-on). Cumulative R&D since 2016 founding is >$1B (derived from annual net losses; exact cumulative figure requires the 10-K statement of operations).

3. Clinical-trial barrier as switching cost. A competitor cannot "switch" the market without paying the trial toll: a head-to-head Phase 3 in the 2L HR+/HER2− PI3Kα-mutated setting is ~2–3 years and ~$100–300M. That is the implicit switching cost protecting zovegalisib's position — real, but already being paid by Roche (inavolisib, INAVO120 read out) and in-process by Scorpion (STX-478, Phase 1/2), so the barrier is degradable.

• Zovegalisib median PFS 11.1 months in heavily pre-treated PI3Kα-mutated HR+/HER2− mBC (kinase 11.2 / non-kinase 11.0) at the 400mg BID fed Phase 3 dose — ESMO TAT 2026, Mar 16.
• <5% G3/4 hyperglycemia and no G4/5 events vs alpelisib 36.6% / inavolisib 5.6% — the WT-sparing allosteric mechanism's tolerability proof.
• FDA Breakthrough Therapy designation for the ReDiscover-2 population.
• Phase 3 ReDiscover-2 (vs capivasertib+fulvestrant) ongoing since mid-2025; 1L triplet Phase 3 (zovegalisib + atirmociclib + ET) to initiate early 2027.
• Cash $910.9M (Q2 2026) with runway into 2029; H1 2026 OCF −$105.2M (burn declining YoY).

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Addressable advanced annual US cases =

310,720 × 0.68 × 0.35 × 0.25

= 18,487.9

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Peak US revenue at 10% share =

18,487.9 × $180,000 × 0.10

= $332,781,300

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