Why Revolution Medicines Shares Are Sliding After Hours On Wednesday

Shares of Revolution Medicines Inc. (NASDAQ:RVMD) tumbled in after-hours trading on Wednesday after AbbVie Inc. (NYSE:ABBV) denied reports that it was in talks to acquire the cancer-drug developer, reversing an over 28% rally sparked by the takeover speculation.

Report Lifts AbbVie Stock Too As Investors Cheer Oncology Prospects

The Wall Street Journal reported on Wednesday that AbbVie was in advanced talks to buy Revolution Medicines, but the terms and a potential purchase price were not disclosed.

Revolution Medicines had also attracted interest from other suitors, the report said.

The company had a market capitalization of about $16 billion before the report, but after its shares surged nearly 29% on the news, its value hit nearly $20 billion. AbbVie shares also rose after the report.

The companies did not immediately respond to Benzinga‘s requests for comments, but AbbVie told Reuters it was not in discussions with Revolution Medicines.

AbbVie, which has a market value above $400 billion, has increasingly focused on acquiring early-stage platforms and technologies to drive long-term growth, including recent multibillion-dollar oncology deals.

Revolution’s experimental cancer drugs are largely in development, and some have yet to enter human trials, according to its website.

What’s Going On With RVMD And ABBV Stocks?

RVMD shares have more than doubled in the past year, on the back of a broader rebound in biotech stocks. However, the stock fell 11.5% in extended trading on Wednesday, after closing 28.6% higher at $102.71, according to data from Benzinga Pro.

Benzinga’s Edge Rankings point to extremely strong momentum, with bullish price trends across the short, medium, and long-term.

Meanwhile, AbbVie shares were down nearly 1% in extended trading on Wednesday, after closing 4.2% higher at $233.42. The stock has added over 30% to its value in the last year. Separately, the company also lowered its 2025 profit outlook after flagging a $1.3 billion in-process R&D charge in the fourth quarter.

Benzinga indicators show strong momentum and solid quality scores, but weak value metrics, with the stock under short-term pressure while maintaining positive medium and long-term price trends.

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