RLAY (Best Idea) - BUY - Zovega's VA Efficacy Tops Expectations And Sets High Bar For Any Potential Future Competitors; Data Update Guided YE26

Research evidence excerpt

RLAY (Best Idea) - BUY - Zovega's VA Efficacy Tops Expectations And Sets High Bar For Any Potential Future Competitors; Data Update Guided YE26

May 19, 2026

Brad Canino brad.canino@guggenheimpartners.com RLAY (Best Idea) - BUY - Zovega's VA Efficacy Tops

212 823 6558 Expectations And Sets High Bar For Any Potential

Future Competitors; Data Update Guided YE26

RLAY BUY Key Message: First zovegalisib phase 1 vascular anomalies (VA) data have a higher

Relay Therapeutics, Inc. volumetric response rate (VRR) than expected by any investor with whom we spoke into

Sector: Biotechnology the report. Safety, with no patient discontinuing out to at most 36 weeks of treatment,

appears clean enough to strengthen the bull case that the profile of zovegalisib can

Company Update expand the market potential to >$1bn with greater penetration and treatment chronicity

Share Price $12.10 (see our VA market analysis discussing these dynamics from March: LINK). Our investor

Price Target $22.00 discussions headed into the event of a +30-35% phase 1 upside move may seem

conservative. New VA data guidance for year-end adds a near-term catalyst to provide

follow-through for shares, and management’s enrollment execution (12 patients in last

Revenue ($M) 12 weeks) suggests it will be a meaty update. As responses appear to be deepening

(FY DEC) 1Q 2Q 3Q 4Q FY over time, expectations for those new data are likely to be positive. The forthcoming

2025 7.7 0.7 0.0 7.0 15.4 regulatory update and likely accelerated approval opportunity will counter any pushback

2026 3.0 0.0E 0.0E 0.0E 3.0E on valuation, in our view. Honestly, what we underestimated from RLAY’s study design

2027 — — — — 0.0E was just how adequately it would define the dose range. The 300mg and 400mg BID

Adj.