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Following a solid data readout for RLY-2608 plus fulvestrant in HR+/HER2- metastatic breast cancer harboring a PI3K-alpha mutation, I'm eager to continue adding to my position. The business is now meaningfully de-risked -- even if there's a long way to go remaining.

The September 2024 data readout for the doublet of RLY-2608 plus fulvestrant compare favorably to prior-generation assets dotting the competitive landscape. That includes Piqray / Vijoice, which generated full-year 2023 revenue of $505 million from the same opportunity, plus a non-cancer opportunity in vascular malformations.

This specific purchase was me simply playing the weekend data readout for fellow next-generation PI3K-alpha inhibitor STX-478 from Scorpion Therapeutics.

If you aren't already on Discord, then join me and fellow members as we discuss biotech investing and this trade in a more timely manner.

The Trade

Relay Therapeutics is considered a Growth (Quality) position. I purchased 132.45 shares at $7.55 per share on September 13, 2024.

Margin of Safety & Allocation

Relay Therapeutics is considered a Growth (Quality) position. The current modeled fair valuation for the company based on my 2024 model, primarily reflecting the commercial value of lirafugratinib (RLY-4008), is below:

• Market close September 4: $6.35 per share
• Modeled Fair Valuation: $23.71 per share
• Allocation Range: Up to 15%

Further Reading

• September 2024 research note providing a cheat sheet for the upcoming RLY-2608 data readout
• May 2024 Finch Trade (bought $1,000 at $6.28 per share)
• January 2024 research note looking at the year ahead