Relay Therapeutics, Inc. (RLAY): A Bull Case Theory

We came across a bullish thesis on Relay Therapeutics, Inc. (RLAY) on Steve Wagner’s Substack. In this article, we will summarize the bulls’ thesis on RLAY. Relay Therapeutics, Inc. (RLAY)'s share was trading at $3.23 as of 4^th June.

Relay Therapeutics is gaining momentum in oncology, thanks to promising data from its PI3Kα inhibitor RLY-2608, unveiled at ASCO 2025. Targeting a difficult subset of breast cancer—PI3Kα-mutated, HR+/HER2- metastatic patients who have already progressed on CDK4/6 inhibitors—RLY-2608, in combination with fulvestrant, demonstrated a median progression-free survival of 10–11 months.

This level of efficacy represents a meaningful improvement over existing second-line therapies and marks a notable step forward for a patient population that hasn't seen substantial innovation in over a decade. Importantly, these results were not only consistent with earlier findings but also highlighted the drug’s strong tolerability profile—an edge over the current standard PI3Kα inhibitor, which is widely known for severe side effects.

Relay’s molecule is mutant-selective, aiming to suppress tumor activity while minimizing collateral damage to healthy tissue, a design advantage made possible through its computational drug discovery platform.

Buoyed by the strength of these results, Relay is preparing to launch a pivotal Phase 3 trial, ReDiscover-2, by mid-2025—the first late-stage test for a mutant-selective PI3Kα inhibitor. A successful outcome could lead to regulatory approval and potentially reshape the treatment landscape. Relay is also exploring novel combination regimens, such as pairing RLY-2608 with CDK4 inhibitors, underscoring its ambition to expand its oncology footprint.

More broadly, the RLY-2608 data validate Relay’s tech-driven approach and bring the company closer to its first commercial product. For biotech investors, this represents a convergence of high unmet need, platform validation, and late-stage clinical momentum with asymmetric upside potential.

We previously covered a bullish thesis on Relay Therapeutics (RLAY) by Steve Wagner on Substack in December 2023, which emphasized RLY-2608’s impressive early clinical data, favorable safety profile, and the stark disconnect between Relay’s cash balance and market valuation. The thesis played out as the stock has since declined, but new data presented at ASCO 2025 further reinforced the clinical promise of RLY-2608. In his June 2025 update, Wagner maintains the long view but shifts focus to the consistency of late-stage results, the upcoming pivotal Phase 3 trial, and the broader platform validation, positioning Relay as a high-upside oncology platform with a first commercial product on the horizon.

Relay Therapeutics, Inc. (RLAY) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held RLAY at the end of the first quarter which was 37 in the previous quarter. While we acknowledge the risk and potential of RLAY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.