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Revolution Medicines (RVMD)
NASDAQ:RVMD
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Revolution Medicines
(NASDAQ:RVMD)
52Neutral
Positive Factors
Clinical Development
Revolution Medicine's lead asset, daraxonrasib, is in Phase 3 for adjuvant, 1L, and 2L PDAC and 2L NSCLC, indicating significant progress in its clinical development.
Financial Position
Revolution ended 2024 with roughly $2.29B in cash and cash equivalents, providing an operational runway through multiple key data catalysts.
Market Potential
Daraxonrasib is seen as an emerging multi-billion dollar drug and RVMD remains a top performer.
Negative Factors
Financial Performance
RVMD reported a net loss of $194.5M, or ($1.12)/share, higher than expected due to more than expected operating expenses.
Regulatory and Clinical Risks
Risks include clinical setbacks, inability to secure timely regulatory approval, and potential long-term dilution risk.
Revolution Medicines (RVMD) vs. S&P 500 (SPY)
Market Cap
$7.17B
Dividend YieldN/A
Average Volume (3M)1.71M
Price to Earnings (P/E)―
Beta (1Y)1.33
Revenue Growth-100.00%
EPS Growth5.49%
CountryUS
Employees534
SectorHealthcare
Sector Strength69
IndustryBiotechnology
Share Statistics
EPS (TTM)-3.57
Shares Outstanding185,913,330
10 Day Avg. Volume1,858,942
30 Day Avg. Volume1,713,234
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)12629.51
Price to Cash Flow (P/CF)-12.80
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$68.30Price Target Upside76.17% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
Revolution Medicines Business Overview & Revenue Model
Company DescriptionRevolution Medicines, Inc. (RVMD) is a biotechnology company that operates in the pharmaceutical sector, focusing on the discovery and development of novel targeted therapies for cancer. The company is particularly known for its precision oncology approach, targeting specific genetic mutations and pathways that drive cancer growth and progression. Revolution Medicines' core products are centered around inhibiting critical signaling pathways, such as the RAS and mTOR pathways, which are implicated in various types of cancers.
How the Company Makes MoneyRevolution Medicines generates revenue primarily through strategic collaborations, research and development partnerships, and milestone payments from other pharmaceutical companies. The company enters into agreements with larger pharmaceutical firms to co-develop and commercialize its drug candidates, often receiving upfront payments, research funding, and future royalties on sales of successfully developed products. Additionally, Revolution Medicines may also benefit from licensing agreements, wherein it grants other companies the rights to use its proprietary technologies or compounds in exchange for licensing fees.
Revolution Medicines Financial Statement Overview
Summary
Revolution Medicines faces significant financial challenges with declining revenues and persistent losses, common in the biotechnology industry due to high R&D costs and long product development cycles. While the balance sheet reflects strong liquidity and low leverage, the cash flow statement highlights the need for efficient cash management to sustain operations.Income Statement
Revolution Medicines shows a declining revenue trend over the past five years, with a significant drop to zero revenue in the most recent year. Margins, including gross profit and net income, are negative, reflecting substantial losses and indicating challenges in achieving profitability.45
Neutral
Balance Sheet
The company has maintained a strong cash position with negative net debt, suggesting adequate liquidity. However, the consistent high levels of net losses are concerning. The debt-to-equity ratio remains low, indicating conservative leverage, which is positive for financial stability.60
Neutral
Cash Flow
Cash flows remain negative with increasing operating and free cash flow deficits, suggesting ongoing challenges in generating positive cash flow from operations. However, substantial financing activities have bolstered cash reserves, which can support operations in the short term.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 0.00 | 11.58M | 35.38M | 29.39M | 42.98M | Gross Profit |
| 0.00 | 11.58M | 25.72M | 22.06M | -89.27M | EBIT |
| -689.52M | -487.19M | -258.28M | -188.01M | -110.70M | EBITDA |
| -689.52M | -430.58M | -239.47M | -179.75M | -101.91M | Net Income Common Stockholders |
| -600.09M | -436.37M | -248.71M | -179.77M | -108.16M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.29B | 1.85B | 644.94M | 577.05M | 440.74M | Total Assets |
| 2.56B | 2.06B | 811.93M | 737.99M | 567.40M | Total Debt |
| 135.84M | 87.94M | 64.20M | 66.63M | 32.66M | Net Debt |
| -407.22M | -608.20M | -97.21M | -41.86M | -71.60M | Total Liabilities |
| 293.10M | 235.51M | 126.74M | 135.42M | 92.72M | Stockholders Equity |
| 2.27B | 1.83B | 685.19M | 602.57M | 474.68M |
| Cash Flow | Free Cash Flow | |||
| -567.74M | -358.30M | -235.22M | -153.71M | -103.00M | Operating Cash Flow |
| -557.44M | -350.57M | -224.40M | -147.18M | -100.06M | Investing Cash Flow |
| -554.39M | -342.60M | -24.12M | -142.12M | -234.23M | Financing Cash Flow |
| 959.41M | 1.23B | 301.43M | 294.18M | 422.78M |
Revolution Medicines Technical Analysis
Neutral
38.77
Price Trends
37.84
Positive
40.86
Negative
44.26
Negative
Market Momentum
0.12
Negative
59.40
Neutral
85.45
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RVMD, the sentiment is Neutral. The current price of 38.77 is above the 20-day moving average (MA) of 35.31, above the 50-day MA of 37.84, and below the 200-day MA of 44.26, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 59.40 is Neutral, neither overbought nor oversold. The STOCH value of 85.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RVMD.
Revolution Medicines Risk Analysis
Revolution Medicines disclosed 82 risk factors in its most recent earnings report. Revolution Medicines reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Revolution Medicines Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $7.24B | 24.41 | 17.90% | 0.20% | 15.52% | 40.29% | |
61 Neutral | $5.80B | 87.79 | 1.61% | 1.00% | 2.45% | -80.87% | |
55 Neutral | $5.17B | ― | -31.26% | ― | 104.04% | 87.80% | |
52 Neutral | $7.17B | ― | -29.33% | ― | -100.00% | 5.49% | |
51 Neutral | $5.32B | 3.32 | -40.25% | 2.90% | 17.93% | 2.14% | |
51 Neutral | $7.86B | 1.93 | -7.10% | ― | -20.84% | -102.48% | |
46 Neutral | $6.89B | ― | 35.68% | ― | 2285.27% | 27.90% |
* Healthcare Sector Average
Performance Comparison
RVMD
Revolution Medicines
38.77
1.66
4.47%
TFX
Teleflex
135.21
-71.73
-34.66%
ENSG
The Ensign Group
126.04
7.57
6.39%
BPMC
Blueprint Medicines
87.66
-5.44
-5.84%
BBIO
BridgeBio Pharma
36.30
10.83
42.52%
ROIV
Roivant Sciences
11.01
-0.12
-1.08%
Revolution Medicines Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -4.27% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant progress in Revolution Medicines' RAS(ON) inhibitor pipeline and a strong financial position to support future operations. However, increased net losses and operating expenses were noted. The overall sentiment leans positive given the advancements in clinical trials and strategic collaborations.Highlights
Strong Financial Position
Revolution Medicines ended the fourth quarter of 2024 with $2.3 billion in cash and investments, including $823 million from an equity offering, projecting funding for operations into the second half of 2027.
Advancements in RAS(ON) Inhibitor Pipeline
Significant progress was made with RAS-focused drugs, reporting compelling monotherapy clinical data, especially with daraxonrasib in pancreatic ductal adenocarcinoma (PDAC) and non-small cell lung cancer.
Initiation of Phase III Trials
Commencement of Phase III trials for daraxonrasib in non-small cell lung cancer and PDAC, aiming for substantial enrollment completion in 2025.
Strategic Collaborations
Entered into discovery and clinical collaborations to expand treatment strategies, including a PRMT5 inhibitor with Tango and bispecific antibodies with Aethon Therapeutics.
Lowlights
Increased Net Loss
Net loss for Q4 2024 was $194.6 million, an increase from $161.5 million in Q4 2023, attributed to higher operating expenses due to clinical development program expansions.
Increased R&D and G&A Expenses
R&D expenses rose to $188.1 million in Q4 2024 from $148.5 million in Q4 2023, and G&A expenses increased due to commercial preparation activities and personnel-related expenses.
Company Guidance
During the Revolution Medicines Q4 2024 earnings call, significant guidance was provided for the upcoming year. The company reported a strong financial position with $2.3 billion in cash and investments, projecting this to fund operations into the second half of 2027. Key priorities for 2025 include executing pivotal trials for daraxonrasib in metastatic pancreatic cancer and non-small cell lung cancer, with enrollment expected to substantially complete this year for a data readout in 2026. The company plans to initiate a first-line metastatic pancreatic cancer trial with daraxonrasib and chemotherapy and is designing a registrational trial for daraxonrasib in resectable pancreatic cancer as an adjuvant treatment. Additionally, Revolution Medicines aims to generate data to inform development priorities for elironrasib and zoldonrasib, with potential pivotal trials anticipated for 2026. The company expects a GAAP net loss between $840 million and $900 million for 2025, driven by increased expenses from clinical development expansions and commercial preparations.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.