Apr. 17 at 1:05 PM
BofAā¬ļø
$RLAY's PT and said: Previewing upcoming data in rare disease with unmet need; reit Buy, PO to
$21āHigher PO on higher conviction for expanding opportunity
$PVLA TARA
$CELC RHHBY NVS LLY AZN
BofA addedāWe preview initial clinical data for Relay's zovegalisib in vascular malformation (VM), ahead of late-breaking presentation at ISSVA (May 20).
We believe the drug could differentiate from other treatments for this disease. This leads us to raise our PO to
$21 (from
$15) after adding risk-adjusted VM forecast (
$1BN+ nominal) in our model.
RLAY has had a strong run YTD (+83% vs +12% XBI) amid upcoming catalysts and peer group consolidation.
Even with growing attention around the upcoming data, we think RLAY's ongoing development for breast cancer (2L) and cash position support today's valuation.
We see further upside potential from: 1) data further supporting zovega as a leading treatment for VM, 2) the drug expanding into earlier-stage breast cancer. Reiterate Buy.
