Relay Therapeutics Announces Third Round of Layoffs, Refocuses on Clinical Programs

Relay Therapeutics, a Massachusetts-based biotech company, has announced its third round of layoffs in less than a year, cutting approximately 70 employees from its workforce. This latest restructuring effort, combined with previous cost-saving initiatives, represents a significant 75% reduction in the company's annual research budget.

Workforce Reductions and Cost-Cutting Measures

The recent job cuts follow two previous rounds of layoffs in 2024, with 30 employees let go in October and a 5% reduction in July of the same year. These measures are part of a broader strategy to streamline operations and extend the company's cash runway, allowing Relay to focus on its key clinical initiatives.

A spokesperson for Relay Therapeutics stated, "In today's environment, it was critical to make this challenging decision in order to streamline our operations, implement cost reductions and extend our cash runway to drive forward our clinical initiatives, to which we remain committed as ever."

Focus on Clinical Programs and Pipeline Development

Despite the workforce reductions, Relay Therapeutics remains committed to advancing its clinical programs. The company's primary focus includes:

1. Initiating and completing a phase 3 metastatic breast cancer trial of PI3Kα inhibitor RLY-2608 in combination with fulvestrant, along with additional supportive breast cancer combination clinical trials.
2. Conducting a phase 1 trial of RLY-2608 in vascular malformations, a genetic condition that can cause complications such as pain, swelling, and organ damage.
3. Performing investigational new drug (IND) application-enabling studies for new programs in Fabry disease and solid tumors with NRAS mutations.
4. Advancing research efforts on a preclinical program targeting a high-value, previously intractable target.

Recent Clinical Developments and Strategic Decisions

In September 2024, Relay reported promising results for RLY-2608 in a first-in-human trial, demonstrating a 9.2-month extension in progression-free survival for patients with metastatic breast cancer. The company positions this drug candidate as a potential challenger to AstraZeneca's Truqap (capivasertib).

As part of its restructuring efforts, Relay has made strategic decisions to discontinue certain programs, including:

1. A preclinical pan-mutant selective PI3Kα inhibitor
2. An oral small molecule CDK2 inhibitor
3. An SHP2 inhibitor, following Genentech's decision to end their collaboration on the asset

The company expects these changes, including the previous rounds of layoffs, to result in annual savings of approximately $50 million.