RHHBY Roche Holdings Ltd AG (QX)

By Colin Kellaher

Relay Therapeutics Inc. on Monday said it signed a worldwide license and collaboration agreement with Roche Holdings AG's Genentech unit for the development and commercialization of Relay's SHP2 inhibitor RLY-1971 in the fight against cancer.

Relay, a Cambridge, Mass., clinical-stage precision-medicine company, said it will receive an up-front payment of $75 million and an additional $25 million in near-term payments.

Relay said it is also eligible for up to $695 million in additional potential milestone payments, along with royalties on global net product sales.

The company said Genentech will assume development of RLY-1971 with the potential to expand into multiple combination studies, including with Genentech's GDC-6036, an investigational inhibitor of KRAS G12C.

As a result of the collaboration, Relay said it expects to have enough cash and investments to sustain its operations through 2024.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

December 14, 2020 08:48 ET (13:48 GMT)

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