Relay Therapeutics Inc. (NASDAQ:RLAY) has entered a global license and collaboration agreement with Roche Group member, Genentech, for the RLY-1971 development and commercialization.
Relay therapeutics and Genentech to develop and commercialize RLY-1971
RLY-1971 is a potent SHP2 inhibitor that Genentech will assume development following the collaboration agreement. The collaboration includes possible expansion into several combination studies including Genentech’s experimental KRAS G12C inhibitor, GDC-6036. Relay Therapeutics’ CEO Sanjiv Patel said the RLY-1971 has the potential of serving as a foundation for combination therapy in several solid tumors. Therefore the SHP2 inhibitor represents a positive approach for cancer patients. Sanjiv added that Roche and Genentech’s footprint globally and extensive oncology expertise makes them ideal partners for Relay Therapeutics for RLY-1971 development and commercialization.
Roche’s global pharma partnering head, James Sabry stated that Genentech is committed to understand underlying KRAS biology which is the most commonly mutated onco9ogne and cancer growth driver. He said that Genentech is delighted to partner with Relay Therapeutics and they are optimistic that the combination of SHP2 and KRAS G12C inhibitors represented an encouraging approach that could be a potential new treatment alternative for patients exhibiting KRAS G12C mutant tumors.
Relay Therapeutics to receive an upfront payment of $75 Million
According to the terms of the deal, Genentech will pay Relay Therapeutics an upfront payment of $75 million and will be eligible for additional near-term payments of up to $25 million. Most importantly Relay Therapeutics has the right of o[ting into a 50/50 RLY-1971 profit/cost-sharing in the US. Should the company opt-in, and then it will be eligible for 50% of profits for RLY-1971 US sales and additional ex-US commercialization and sales milestone payments of up to $410 million. on the other hand, if Relay Therapeutics doesn’t opt-in its will receive around $695 million in development, commercialization, and sales milestone, and royalties in net sales globally.
If the combination of RLY-1971 and GDC-6036 receives regulatory approval, Relay Therapeutics will be eligible for additional royalties. Notably, the company has retained the right to combine RLY-1971 with its mutant-selective PI3Kα and FGFR2 programs.