Why I'm Buying Relay Therapeutics
Taking a Look at Relay Therapeutics (NYSE: RLAY), Weekly Activity, & Portfolio Update.
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Setting the Stage for Relay Therapeutics
In 1998, Novartis researchers embarked on clinical trials for imatinib, a small molecule inhibitor targeting chronic myelogenous leukemia (CML), a specific blood cancer. Astoundingly, patients who were once considered untreatable experienced lasting recoveries, with treatment success rates jumping from a 55% standard of care to an impressive 95%. Fast forward to 2001, and the U.S. Food and Drug Administration (FDA) gave the green light to imatinib for CML treatment. Today, many recognize it as Gleevec. This groundbreaking drug reshaped the medical landscape, ushering in an era of precision medicine.
The science behind Gleevec is fascinating: it blocks a unique protein essential for CML cells but leaves healthy cells untouched. This innovation hinted at the possibility of other specific targets for various diseases. These assumptions weren't misplaced. The 2003 completion of the Human Genome Project opened new horizons in comprehending human health. Over the next twenty years, the identification of genes and their corresponding proteins revealed their significant roles in cancer evolution. Currently, it's understood that roughly 125 genetic mutations are found in 89% of solid tumors. Remarkably, in 2019, drugs targeting four dominant oncogenic mutations yielded a combined revenue of $25.6B. Yet, there's vast potential still untapped.
Modern inhibitor drugs, although more advanced than chemotherapy, have their limitations. Each protein can have multiple mutations and variations, posing challenges in targeting them accurately. Broad inhibitions or unintended interferences can lead to side effects, reduced efficacy, or even result in cancers becoming treatment-resistant.
So, what’s this all have to do with Relay Therapeutics? Well, this where RLAY comes in… their cutting-edge Dynamo technology platform is poised to revolutionize precision medicine. By utilizing protein movement data to distinguish between closely related proteins, Dynamo has the potential to redefine drug discovery for the sector. While currently the platform is focused on select therapeutic areas, its broader potential is awe-inspiring. From formulating vaccines and antibodies effective against SARS-CoV-2 mutations to enhancing gene-editing enzymes, Dynamo promises a bright future for discerning long-term investors.
So, What’s the Big Deal with RLAY?
RLAY is a pre-revenue biotechnology company that has developed, what they call, the Dynamo technology platform, a trailblazing approach for motion-based drug design. This integrative platform combines both hands-on experimental techniques and computational analyses for a more informed drug creation process. The initial step involves cutting-edge techniques such as x-ray crystallography and cryo-electron microscopy to capture precise 3D protein structures. These static representations are then enhanced through computational models, refining the structure even further. The enriched data then undergo analysis by machine learning algorithms on a specialized supercomputer, which can predict protein motions across tens of microseconds (Truly incredible).
This approach has significant potential for drug discovery and development. Through understanding protein movement, Relay Therapeutics can pinpoint unique targets that traditional methods, primarily focusing on static protein imagery, might overlook. This capability means the company can identify high-potential chemical compounds that might otherwise go unnoticed. Using supercomputer simulations, the firm can discern compounds with optimal binding traits for specific proteins, ensuring only the most promising candidates progress to clinical trials.
The Dynamo platform's ultimate vision is to harness precision medicine's advantages throughout the drug discovery process. The aim is to produce drugs that are more targeted, potentially minimizing side effects and permitting increased dosages over extended periods. This could result in lasting, potent effects both for individuals and larger patient groups. Such superior, well-tolerated drugs can greatly enhance combination therapies, elevating the worth of other concurrent medications. Moreover, Relay Therapeutics, with its profound insights into oncogenic mutations and corresponding treatments, can fine-tune patient selection for trials. By enrolling only those most likely to benefit, as identified by genetic tests, the company not only reduces risks but also potentially speeds up the approval pathway, provided their initial drug hypothesis holds true.
“Alright, so get to the point already!” Currently, RLAY boasts an advanced computing system that harnesses a unique dataset, aiding their researchers in modeling protein motion. This state-of-the-art capability boosts the company's confidence in forecasting which molecules show the most promise for development.
The precision of these predictions enhances the specificity of molecule-target interactions in the cancer pathway. This means that the molecules developed are more discerning, interacting mainly with the intended target while sparing similar molecules. Such selectivity results in reduced toxicity for patients, given that minimal disturbances occur to other molecules.
As of now, RLAY is progressing with a promising molecule, RLY-4008 (seen above), which is tailored to engage with the FGR2 site. The current Objective Rate of Response (ORR) stands impressively at 88%, dwarfing the market average of 42%. Although more data is anticipated by the latter half of '23, there's strong optimism surrounding RLY-4008's approval, which could yield revenues ranging between $1B and $2B (Massive opportunity).
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