On August 27, 2020 Relay Therapeutics, Inc. (Nasdaq: RLAY), a clinical-stage precision medicine company transforming the drug discovery process by leveraging unparalleled insights into protein motion, reported second quarter 2020 financial results (Press release, Relay Therapeutics, AUG 27, 2020, View Source [SID1234564090]).
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"2020 has been a transformational year thus far for Relay Therapeutics," said Sanjiv Patel, M.D., president and chief executive officer of Relay Therapeutics. "In January, we transitioned into a clinical-stage company advancing our first medicine, RLY-1971, into clinical development. Additionally, this year we grew our team by 25 percent, completed our IPO and advanced our second medicine, RLY-4008 into clinical development. With the team and balance sheet we have in place, we look forward to executing on our mission of bringing transformative medicines to patients suffering from debilitating and life-threatening diseases."
Second Quarter Financial Highlights
Cash and Cash Equivalents: Cash, cash equivalents and investments totaled $312 million as of June 30, 2020, which excludes the gross proceeds of $460 million from the Company’s initial public offering, compared to $356 million as of December 31, 2019. The Company expects its current cash and cash equivalents, inclusive of IPO net proceeds, will be sufficient to fund its current operating plan into 2023.
R&D Expenses: Research and development expenses were $22 million for the second quarter of 2020, as compared to $16 million for the second quarter of 2019. This increase was primarily due to clinical trial expenses associated with RLY-1971, which commenced in 2020, and additional external costs associated with our pre-clinical candidates. These increases were partially offset by a decrease in laboratory supplies and other costs due to lower capacity as a result of the COVID-19 pandemic. Research and development expenses included $1.3 million in stock-based compensation expenses for the second quarter of 2020.
G&A Expenses: General and administrative expenses were $6 million for the second quarter of 2020, as compared to $4 million for the second quarter of 2019. This increase was primarily due to higher personnel costs, including non-cash stock-based compensation, to support our infrastructure. General and administrative expenses included $1.7 million in stock-based compensation expenses for the second quarter of 2020.
Net Loss: Net loss was $27 million for the second quarter of 2020, or a net loss per share of $6.06, as compared to a net loss of $18 million for the second quarter of 2019, or a net loss per share of $5.28.