13 Best Biotech Penny Stocks to Buy According to Hedge Funds

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4. Relay Therapeutics Inc. (NASDAQ:RLAY)

Share Price as of April 14: $2.42

Number of Hedge Fund Holders: 37

Relay Therapeutics Inc. (NASDAQ:RLAY) transforms the drug discovery process with a focus on enhancing small molecule therapeutic discovery in targeted oncology and genetic disease indications. Its lead product candidates include RLY-2608, PI3Ka, and aGal chaperone. It has collaboration and license agreements with D. E. Shaw Research LLC, Elevar Therapeutics Inc., and Pfizer Inc.

RLY-2608 is a candidate for metastatic breast cancer. Interim Phase 1b data for RLY-2608 combined with fulvestrant showed an 11.4-month median progression-free survival (PFS) in second-line patients and a 39% confirmed overall response rate (ORR) in patients with measurable disease. Relay plans to initiate the Phase 3 ReDiscover-2 trial in mid-2025. This study will enroll ~540 patients with the specific breast cancer profile who have previously received CDK4/6 inhibitor treatment.

By the end of 2024, Relay Therapeutics Inc. (NASDAQ:RLAY) had ~$780 million in cash, cash equivalents, and investments. The company is prioritizing these funds to fully support the execution of the ReDiscover-2 Phase 3 trial. Earlier on March 27, Barclays reiterated its Overweight rating on the company and maintained a 12-month stock price target of $17 per share.

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