Despite $300 Million Capital Increase, U.S. Biotech Stocks Surge $200 Million on Clinical News

US biotech company Relay Therapeutics (NASDAQ: RLAY) climbed more than 6% on the Nasdaq on May 20, closing at $13.85. Trading volume reached 7.39 million shares, and market capitalization rose to about $2.65 billion (roughly KRW 3.6 trillion), marking a one-day increase of around $180 million (approximately KRW 240 billion).

On May 20, the company priced a public offering of 22,916,667 shares at $12 each—raising about $275 million (around KRW 370 billion)—with the offering expected to close around May 22. Two days earlier, Relay announced initial data from the ReInspire Phase 2 trial of zovegalisib in patients with PI3Kα-mutant vascular malformations, reporting a lesion-volume response in 60% of evaluable participants. In response, several Wall Street firms raised their price targets to $20–21 and maintained buy ratings.

Relay Therapeutics is a clinical-stage biotech leveraging its computation-driven “Dynamo” platform to develop small-molecule precision medicines against previously hard-to-target proteins. Its lead candidate, zovegalisib, is in a Phase 3 trial for HR+/HER2– metastatic breast cancer and is also being developed for PI3Kα-mutant vascular malformations. The company additionally has programs targeting NRAS-mutant solid tumors and Fabry disease, positioning it for multiple indication expansions over the medium to long term.