US-based oncology therapy developer Relay Therapeutics filed on Wednesday to raise up to $200m in an initial public offering that will allow telecommunications firm SoftBank and internet technology group Alphabet to exit.
Relay is developing targeted small molecule cancer drugs using discoveries in protein motion and how it relates to the function of proteins that had previously been regarded as undruggable.
Part of the IPO proceeds will fund phase 1 and 1b clinical trials for a drug candidate called RLY-1971 for solid tumours and, theoretically, phase 2/3 trials. It is also planning a phase trial for a second solid tumour-focused candidate, RLY-4008.
The company is also exploring mutant variants of the phosphoinostide 3-kinase alpha enzyme through a program known as RLY-PI3K1047 and intends to select a possible candidate for an Investigational New Drug application.
DE Shaw and Third Rock Ventures provided $56.8m in series A funding for Relay in 2016 that was followed by a $63m series B round featuring Alphabet subsidiary GV and Alexandria Venture Investments, the venture capital arm of real estate investment trust Alexandria Real Estate Equities, in 2017.
BVF Partners led the series B round, which included Third Rock Ventures, Casdin Capital, EcoR1 Capital and Section 32.
SoftBank’s Vision Fund invested $300m to lead Relay’s $400m series C round in late 2018, participating alongside GV, Alexandria Venture Investments, DE Shaw, Casdin Capital, BVF Partners, EcoR1 Capital, Foresite Capital, Perceptive Advisors and Tavistock Group.
Vision Fund owns a 40.7% stake in the company while Third Rock holds 20.7% and DE Shaw 5% through a vehicle called Picularium.
JP Morgan Securities, Goldman Sachs, Guggenheim Securities and Cowen and Company, have been appointed joint book-running managers for the IPO, which is slated to take place on the Nasdaq Global Market.
