Relay Therapeutics Global License And Collaboration Deal With Genentech For RLY-1971 - Quick Facts

(RTTNews) - Precision medicine company Relay Therapeutics, Inc. (RLAY) announced Monday that it has entered into a worldwide license and collaboration agreement with Roche Group subsidiary Genentech Inc. for the development and commercialization of RLY-1971, a potent inhibitor of SHP2.

Genentech will assume development of RLY-1971 with the potential to expand into multiple combination studies including with Genentech's investigational inhibitor of KRAS G12C, GDC-6036.

Under the terms of the agreement, Relay Therapeutics will receive $75 million upfront payment and is eligible to receive $25 million in additional near-term payments and $695 million in additional potential milestones, plus royalties on global net product sales.

Relay Therapeutics also has the right to opt in to a 50/50 U.S. profit/cost share on RLY-1971 and up to $410 million in additional ex-U.S. commercialization and sales-based milestone payments, as well as royalties on ex-U.S. net sales.

Relay Therapeutics retains the right to combine RLY-1971 with its selective FGFR2 and mutant-selective PI3Ka programs.

With the execution of this collaboration, Relay Therapeutics anticipates it will have cash and investments to sustain its operations through 2024.