Form 4: Relay Therapeutics CEO Sanjiv Patel Sells 100,000 Shares Under 10b5-1 Plan

Relay Therapeutics' CEO, Sanjiv Patel, sold 100,000 shares of common stock at $5 per share on December 16, 2024, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• On December 16, 2024, Sanjiv Patel, the President and CEO of Relay Therapeutics, sold 100,000 shares of common stock at a price of $5 per share.
• The sale was executed under a Rule 10b5-1 trading plan adopted by The Patel Family Irrevocable Trust of 2019 on August 7, 2024.
• Following the transaction, Patel directly owns 766,130 shares, including 762,360 shares underlying restricted stock units.
• Additionally, 574,548 shares are held by The Patel Family Irrevocable Trust of 2019, and 687,355 shares are held by The SSP Irrevocable Trust of 2020.
• Patel disclaims beneficial ownership of the shares held by both trusts, which are managed by independent trustees for the benefit of his family members.

Sentiment

Score: 5

Explanation: The document is a standard SEC filing related to an executive stock sale under a pre-arranged plan. It doesn't inherently indicate positive or negative sentiment, but rather a routine transaction.

Industry Context

Sales by company executives are a normal part of corporate governance. Rule 10b5-1 plans are often used to avoid accusations of insider trading, as the trades are pre-scheduled.

Comparison to Industry Standards

• Executive stock sales are common in publicly traded companies, especially in the biotech industry where stock options and equity-based compensation are prevalent.
• Comparing this sale to similar transactions by executives at companies like Amgen, Gilead Sciences, or Vertex Pharmaceuticals would provide context on the scale and potential impact.
• The use of a 10b5-1 trading plan is a standard practice to ensure compliance with insider trading regulations, similar to plans used by executives at Regeneron and Biogen.

Stakeholder Impact

• The sale of shares by the CEO could have a minor negative impact on shareholder confidence, although the use of a 10b5-1 plan mitigates concerns about insider trading.
• The impact on employees, customers, suppliers, and creditors is likely to be minimal.

Key Dates