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Wednesday, H.C. Wainwright adjusted the price target on Revolution (NASDAQ:RVMD) to $72.00 from the previous $73.00, while maintaining a Buy rating on the stock. Currently trading at $39.95 with a market capitalization of $7.44 billion, Revolution maintains a strong analyst consensus rating, with targets ranging from $57 to $88. According to InvestingPro data, the company holds more cash than debt, positioning it well for continued clinical development. The firm’s analyst cited recent clinical data presentations involving Revolution’s elironrasib monotherapy for the treatment of KRASG12C+ non-small cell lung cancer (NSCLC) that had been previously treated with immunotherapy and chemotherapy.
Last week, Revolution shared initial antitumor activity results from their clinical studies. The data showed that elironrasib monotherapy achieved a 56% objective response rate (ORR) and a median duration of response (mDOR) of 9.9 months. With a robust current ratio of 13.46 and an overall Financial Health score of FAIR from InvestingPro, the company appears well-positioned to continue its clinical development programs. In second-line or later (2L+) G12C+ NSCLC patients, both those who had and had not received a G12C(OFF) inhibitor, the ORR was 42%.
These results were compared to existing therapies for NSCLC. KRAZATI (adagrasib) and LUMAKRAS (sotorasib) monotherapies have demonstrated ORRs of 43% and 36%, with median response durations of 8.5 and 10 months, respectively, according to their prescribing information. In contrast, divarasib 400mg has shown a 59.1% ORR, a 14.0-month mDOR, and a 15.3-month median progression-free survival (mPFS) in a similar patient population.
Additionally, Phase 1 results of D3S-001, a next-generation GDP-bound KRAS-G12C inhibitor, indicated a 66.7% ORR in 2L+ G12C-inhibitor naive G12C+ NSCLC patients, but the ORR decreased to 30% in those with prior G12C-inhibitor experience.
The analyst also highlighted the potential for combining elironrasib with other therapeutic agents. Despite the slight decrease in the price target, the reiteration of the Buy rating suggests a positive outlook on Revolution’s stock, reflecting the promising clinical results and the potential for elironrasib in the treatment landscape of NSCLC. With a beta of 1.11, the stock shows moderate market correlation. For deeper insights into Revolution’s financial health, valuation metrics, and growth potential, investors can access the comprehensive Pro Research Report available on InvestingPro, which includes detailed analysis of over 100 financial metrics and expert commentary.
In other recent news, Revolution Medicines reported a significant cash reserve of $2.1 billion at the end of Q1 2025, which is expected to fund operations into the second half of 2027. Despite a net loss of $213.4 million, the company is advancing its cancer treatment pipeline, including its RAS inhibitor portfolio. Revolution Medicines has initiated a Phase 3 clinical trial for its drug daraxonrasib, targeting non-small cell lung cancer with specific RAS mutations. This trial, named RASolve 301, will compare the efficacy of daraxonrasib to traditional chemotherapy in patients who have previously received other treatments.
The company is also expanding its commercial capabilities in the U.S., although no full regulatory approvals for RAS inhibitors in lung cancer have been achieved yet. Revolution Medicines saw increased research and development expenses, reflecting its focus on advancing cancer therapies. The firm continues to prepare for pivotal trials, with data readouts anticipated in 2026. Additionally, Revolution Medicines is exploring ex-U.S. commercialization opportunities, highlighting its commitment to broadening its market reach.
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