REDWOOD CITY, Calif. - Revolution Medicines, Inc. (NASDAQ:RVMD), a biopharmaceutical company focused on developing therapies for RAS-addicted cancers, disclosed today its initiation of a public offering of common stock valued at up to $600 million. The company, whose stock has surged over 100% year-to-date according to InvestingPro data, will also provide underwriters a 30-day option to purchase up to an additional $90 million worth of shares.
The completion, timing, and exact terms of the offering are subject to market conditions, and there is no certainty regarding the finalization or the specifics of the offering. J.P. Morgan, TD Cowen, Goldman Sachs & Co. LLC, and Guggenheim Securities are serving as the joint book-running managers for the offering, while UBS Investment Bank has been appointed as the lead manager.
This financial move follows the company's filing of a shelf registration statement with the U.S. Securities and Exchange Commission (SEC) on March 4, 2024, which took effect immediately upon submission. The offering is being made exclusively through a prospectus, copies of which may be obtained from the SEC's website or directly from the investment banks involved in the offering.
Revolution Medicines' research and development pipeline includes various RAS(ON) inhibitors targeting different oncogenic variants of RAS proteins. The company is currently advancing clinical development of its RAS(ON) inhibitors, including RMC-6236, RMC-6291, and RMC-9805. Additional investigational drugs targeting specific RAS mutations are also part of the company's portfolio. With a market capitalization of $8.75 billion and analyst price targets ranging from $63 to $86, detailed in the comprehensive Pro Research Report available on InvestingPro, the company has attracted significant investor attention despite current unprofitability.
The announcement contains forward-looking statements that are subject to risks and uncertainties, which could cause actual results to differ from those projected. These statements are based on the company's current expectations and are not guarantees of future performance.
Investors and media interested in Revolution Medicines' operations and the proposed offering may find further details in the company's filings with the SEC, including its most recent quarterly report. This news is based on a press release statement from Revolution Medicines, Inc.
In other recent news, Revolution Medicines, Inc. reported significant updates on its clinical trials for RAS-addicted cancers, with a focus on the RAS(ON) inhibitors RMC-6236 and RMC-6291. The company's RMC-6236-001 study showed promising safety and tolerability in pancreatic ductal adenocarcinoma (PDAC) treatment, with patients demonstrating a median progression-free survival (PFS) of 8.8 months and an objective response rate (ORR) of 36%.
In non-small cell lung cancer (NSCLC) treatment, RMC-6236 had an ORR of 38% in certain patients. The company is also exploring combination therapies, with RMC-6236 combined with pembrolizumab showing potential, as did the combination of RMC-6236 with RMC-6291 in treating advanced RAS G12C mutant solid tumors.
TD Cowen reiterated its Buy rating on Revolution Medicines, noting the potential for RMC-6236 to become the standard of care in PDAC and NSCLC. Despite reporting a net loss of $156.3 million for the third quarter, Revolution Medicines maintains a robust cash position of $1.55 billion, expected to fund operations into 2027. These are among the recent developments in Revolution Medicines' ongoing clinical programs.
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