Relay Therapeutics: Initiating Overweight; Zovegalisib Sets Up A Multi-Indication Runway With Breast Cancer And Vascular Anomalies

Research evidence excerpt

Relay Therapeutics: Initiating Overweight; Zovegalisib Sets Up A Multi-Indication Runway With Breast Cancer And Vascular Anomalies

Priyanka Grover, Ph.D. AC North America Equity Research

(1-212) 622-5534 08 July 2026 J P M O R G A N

priyanka.grover@jpmchase.com

Risks to Rating & Price Target

Clinical Risks

There is an inherent risk associated with drug development and clinical trials.

Zovegalisib is in clinical development, with inherent risk of failure to demonstrate an

acceptable efficacy and / or safety profile. Failure of the asset or future products to

achieve an acceptable efficacy and / or safety could adversely affect development and

commercial viability.

Regulatory Risks

Given the novelty of the approach, pending data, regulators may question the benefit /

risk profile of zovegalisib. Hence, a potentially lengthy approval process as well as the

unpredictability of the results of future clinical trials may result in delays or failure of

Relay Therapeutics’ product candidate to obtain regulatory approval.

Commercial, Pricing, and Reimbursement Risks

Relay Therapeutics has limited operating history and has never generated product

revenue. Moreover, there is no guarantee that current or future clinical development

efforts with zovegalisib or future product candidates will produce commercially feasible

products. The company also has no prior experience in marketing drugs. Commercial

approval of zovegalisib in other indications and across different geographies may be

dependent upon partnerships and contributions with other companies. Lower-than-

anticipated pricing, market penetration, or addressable market size are all risks to our

current assumptions.

Financial Risks

At the end of 1Q26, Relay Therapeutics had ~$642M in cash and cash equivalents. Cash