RVMD Stock Tumbles as MRK Reportedly Withdraws Buyout Offer

Shares of Revolution Medicines RVMD slipped 17% yesterday after a Wall Street Journal (WSJ) report said, quoting people familiar with the matter, that pharma bigwig Merck MRK was no longer pursuing the acquisition of this California-based clinical-stage cancer biotech.

The article mentioned that the buyout talks hit a roadblock after Revolution Medicines and Merck could not align over the buyout price. The report also confirmed that buyout talks between MRK and RVMD could soon resume, or that a new bidder for the latter could eventually make the headlines.

Reportedly, both companies have declined to comment on the latest turn of events.

The latest WSJ report comes on the heels of a recent Financial Times report, which stated that Merck was in talks to buy Revolution Medicines for up to $32 billion. The report, however, mentioned that the companies were yet to finalize the deal. Some other large drugmakers have also been pursuing the acquisition of RVMD, and a valuation range of approximately $28 billion to $32 billion has been under consideration.

Revolution Medicines is engaged in developing novel drugs that target the active, GTP-bound form (or ON form) of RAS proteins, which the company refers to as RAS(ON). A potential buyout of RVMD would have boosted Merck’s oncology pipeline.

Earlier this month, a report from the WSJ stated that another large drugmaker, AbbVie ABBV, was in advanced talks to acquire Revolution Medicines. However, AbbVie denied the rumors in an emailed statement to Reuters.

RVMD's Price Performance

In the past six months, shares of Revolution Medicines have soared 162.4% compared with the industry’s rise of 21.6%.

RVMD's Oncology Pipeline Progressing Well

Revolution Medicines’ lead pipeline candidate, daraxonrasib, is an investigational oral RAS(ON) multi-selective inhibitor designed to target several forms of RAS mutations.

Daraxonrasib is being evaluated in late-stage studies for treating patients with previously treated metastatic pancreatic ductal adenocarcinoma (PDAC) and non-small cell lung cancer (NSCLC). The company expects data readout from a phase III PDAC study later in 2026, while phase III studies in first-line metastatic PDAC and NSCLC are also expected to begin later this year.

RVMD is also developing mutant-selective inhibitors like elironrasib and zoldonrasib that are designed to suppress the growth of specific RAS-bearing cancer cells. Both drugs are being evaluated either as monotherapy or in combination with other anti-cancer therapies in separate early-stage studies across solid tumor indications.

While first-generation RAS inhibitors, such as Amgen’s Lumakras and Bristol-Myers’ Krazati, are available on the market, they are not designed to address the resistance mechanisms that limit their long-term efficacy. Notably, Revolution Medicines’ RAS(ON) inhibitors are specifically designed to overcome these resistance barriers, potentially offering more durable clinical responses.

Revolution Medicines, Inc. Price

Revolution Medicines, Inc. price | Revolution Medicines, Inc. Quote

RVMD’s Zacks Rank & Stock to Consider

Revolution Medicines currently has a Zacks Rank #3 (Hold).

A better-ranked stock in the biotech sector is Alkermes ALKS, sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for Alkermes’ 2026 earnings per share have increased from $1.54 to $1.91. Shares of ALKS have gained 26.6% over the past six months.

Alkermes’ earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 4.58%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research