Merck Withdraws from Revolution Medicines Acquisition Talks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: NASDAQ.COM
- Acquisition Talks Halted: Reports indicate that Merck has withdrawn from acquisition discussions with Revolution Medicines, resulting in a nearly 17% drop in its stock price, reflecting the market's high expectations and subsequent disappointment.
- Expected Deal Size: The market had speculated that the potential deal between Merck and Revolution could be worth tens of billions of dollars, and the halt in negotiations has significantly impacted investor sentiment.
- Potential Buyer Dynamics: Despite Merck's withdrawal, reports suggest that other pharmaceutical companies, including AbbVie, remain interested in Revolution, indicating the company's ongoing appeal in the oncology drug development sector.
- Clinical Trial Progress: Revolution's leading drug candidate, daraxonrasib, is currently in Phase 3 clinical trials, and if successful, it could still attract other buyers and achieve a handsome premium sale.
Analyst Views on RVMD
Wall Street analysts forecast RVMD stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for RVMD is 86.00 USD with a low forecast of 67.00 USD and a high forecast of 147.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
20 Buy
0 Hold
0 Sell
Strong Buy
Current: 97.780
Low
67.00
Averages
86.00
High
147.00
Current: 97.780
Low
67.00
Averages
86.00
High
147.00
About RVMD
Revolution Medicines, Inc. is a clinical-stage oncology company developing novel targeted therapies for RAS-addicted cancers. The Company’s research and development pipeline comprises RAS(ON) inhibitors that bind directly to RAS variants, which it refers to as RAS(ON) Inhibitors, and RAS companion inhibitors that target key nodes in the RAS pathway or associated pathways, which it refers to as RAS Companion Inhibitors. Its RAS(ON) Inhibitors are designed to be used as monotherapy, in combination with other RAS(ON) Inhibitors and/or in combination with RAS Companion Inhibitors or other therapeutic agents. The company’s RAS(ON) inhibitors are daraxonrasib (RMC-6236), an RAS(ON) multi-selective inhibitor; elironrasib (RMC-6291), an RAS(ON) G12C-selective inhibitor; and zoldonrasib (RMC-9805), a RAS(ON) G12D-selective inhibitor, are in clinical development. The Company’s pipeline also focuses on RAS(ON) mutant-selective inhibitors, including RMC-0708 (Q61H) and RMC-8839 (G13C).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
