Relay Therapeutics, a clinical-stage precision medicine biotech based in Cambridge, Massachusetts, has announced a workforce reduction of approximately 10%, impacting about 30 employees. This move is part of a broader streamlining effort focused on optimizing the company's research organization and improving operational efficiency. The announcement comes as Relay Therapeutics seeks to manage its financial resources while advancing its clinical programs.
The company spokesperson stated that the streamlining process involves "rationalizing the tools and on streamlining the teams to enable them to be more efficient." This restructuring is projected to save the biotech approximately $50 million per year. This is particularly relevant given Relay Therapeutics' reported net loss of $92.2 million for the second quarter of 2024 and previous SEC filings indicating significant operating losses since its inception in 2016.
Financial Context and Clinical Progress
In an August SEC filing, Relay Therapeutics acknowledged its lack of success in completing large-scale, pivotal clinical trials. However, the company has also made strides in its clinical development programs. Notably, Relay Therapeutics announced a global clinical trial collaboration with Pfizer for the combination development of RLY-2608 + fulvestrant + atirmociclib (CDK4i) in certain metastatic breast cancers. Furthermore, interim Phase I/II data for RLY-2608 demonstrated progression-free survival in heavily pretreated patients.
Don Bergstrom, President of R&D at Relay Therapeutics, stated that the findings suggest RLY-2608 could offer a level of benefit to patients not previously possible with existing nonselective medicines, while also having significantly less toxicity. The company intends to engage with regulatory agencies to finalize the design of a pivotal trial, with the goal of initiating it next year.
RLY-2608 Clinical Data
In September, Relay Therapeutics announced positive early-stage clinical data for RLY-2608, an experimental treatment for breast cancer. The interim Phase I/II data showed promising progression-free survival in heavily pretreated patients. These results support the potential of RLY-2608 to provide a new treatment option for patients who have exhausted existing therapies. The company is moving forward with plans to initiate a pivotal trial to further evaluate the efficacy and safety of RLY-2608.
