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Revolution Medicines (RVMD)
NASDAQ:RVMD
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Revolution Medicines
(NASDAQ:RVMD)
Rating:52Neutral
Price Target:―
Positive Factors
Clinical Trials
Promising clinical updates have been provided for several RAS(ON) inhibitor assets, including new data from combination studies with RMC-6236 and Keytruda.
Efficacy Data
Elironrasib treatment elicited a 56% overall response rate (ORR) and a 9.9-month median duration of response (mDOR) in specific lung cancer patients, suggesting strong efficacy.
Strategic Expansion
Revolution Medicines plans to advance RMC-6236 into earlier lines of therapy for metastatic PDAC, indicating strategic expansion in treatment approaches.
Negative Factors
Dose Optimization
The company has the data needed to move forward in the non-G12C setting, with ongoing dose optimization for the G12C setting.
Market Competition
The data reinforces RVMD's leading position within the increasingly competitive RAS inhibitor landscape.
Study Enrollment
Initiation of Daraxonrasib studies in PDAC 1L and adjuvant in resectable setting is planned, and the 2L RASolute 302 study is on track to complete enrollment.
Revolution Medicines (RVMD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.89B
Dividend YieldN/A
Average Volume (3M)1.82M
Price to Earnings (P/E)―
Beta (1Y)1.24
Revenue Growth-100.00%
EPS Growth5.49%
CountryUS
Employees616
SectorHealthcare
Sector Strength40
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.13
Shares Outstanding186,267,550
10 Day Avg. Volume1,374,845
30 Day Avg. Volume1,818,579
Financial Highlights & Ratios
PEG Ratio18.74
Price to Book (P/B)2.77
Price to Sales (P/S)0.00
P/FCF Ratio-12.23
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$70.63Price Target Upside91.00% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
Revolution Medicines Business Overview & Revenue Model
Company DescriptionRevolution Medicines, Inc., a clinical-stage precision oncology company, focuses on developing therapies to inhibit frontier targets in RAS-addicted cancers. The company is developing RMC-4630, an inhibitor of SHP2, which is in Phase 1/2 clinical trial for the treatment of solid tumors, such as gynecologic and colorectal cancer tumors. It also develops RMC-5845, a selective inhibitor of SOS1, a protein that converts RAS (OFF) to RAS (ON) in cells; and RMC-5552, a hyperactivated selective inhibitor of mTORC1 signaling in tumors. In addition, the company is developing RMC-6291, a mutant-selective inhibitor of KRASG12C(ON) and NRASG12C(ON); and RMC-6236, a RAS-selective inhibitor of multiple RAS(ON) variants. Further, it develops RAS(ON) Inhibitors targeting KRASG13C(ON) and KRASG12D(ON). The company has a collaboration agreement with Sanofi for the research and development of SHP2 inhibitors, including RMC-4630. Revolution Medicines, Inc. was incorporated in 2014 and is headquartered in Redwood City, California.
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 Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: -1.81%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call provided an optimistic outlook with significant clinical advancements and a strong financial position, despite increased R&D expenses and net loss.Q1-2025 Updates
Positive Updates
Strong Financial Position
Ended the first quarter of 2025 with $2.1 billion in cash and investments, projected to fund operations into the second half of 2027.
Promising Clinical Developments
Daraxonrasib, elironrasib, and zoldonrasib showed promising anti-tumor activity in non-small cell lung cancer and pancreatic cancer, with plans to initiate more Phase 3 trials.
Global Expansion for Daraxonrasib
The RASolute 302 trial in pancreatic cancer is enrolling patients in the U.S., EU, and Japan, with expected data readout in 2026.
Positive Phase 3 Enrollment Progress
Phase 3 trials for daraxonrasib in both previously treated pancreatic and non-small cell lung cancers are progressing well.
Negative Updates
Increased R&D Expenses
Research and development expenses for Q1 2025 rose to $205.7 million from $118 million in Q1 2024, primarily due to clinical trial and manufacturing expenses.
Higher Net Loss
Net loss for Q1 2025 was $213.4 million compared to $116 million for Q1 2024, driven by increased operating expenses.
Potential Safety Concerns
Some treatment combinations showed QTc prolongation and rash, though these were generally manageable and low-grade.
Company Guidance
During the Q1 2025 earnings call for Revolution Medicines, multiple metrics and strategic updates were shared regarding their ongoing and future clinical trials. The company reported a cash reserve of $2.1 billion, expected to fund operations until the second half of 2027. R&D expenses rose to $205.7 million from $118 million the previous year, mainly due to increased clinical trial and manufacturing activities, particularly for the daraxonrasib program, now in two Phase 3 trials. G&A expenses increased to $35 million from $22.8 million, driven by personnel and commercial preparation costs. The net loss for the quarter expanded to $213.4 million from $116 million in Q1 2024. The company reiterated its full-year 2025 GAAP net loss projection between $840 million and $900 million, including non-cash stock-based compensation of $115 million to $130 million. Revolution Medicines continues to advance its portfolio of RAS(ON) inhibitors, with Phase 3 trials planned for daraxonrasib in first-line metastatic pancreatic cancer and non-small cell lung cancer in 2025, aiming to transform treatment across RAS mutant cancer types, with pivotal combination trials expected to initiate in 2026.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
Negative
36.98
Price Trends
37.77
Negative
39.49
Negative
43.69
Negative
Market Momentum
0.19
Positive
42.86
Neutral
23.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RVMD, the sentiment is Negative. The current price of 36.98 is below the 20-day moving average (MA) of 39.73, below the 50-day MA of 37.77, and below the 200-day MA of 43.69, indicating a bearish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 42.86 is Neutral, neither overbought nor oversold. The STOCH value of 23.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 1 New Risks
1.
Our current shares outstanding and resulting market valuation do not reflect shares of our common stock issuable upon the exercise of warrants that are exercisable at the discretion of the holders of such warrants. If we sell shares of our common stock in future financings, stockholders may experience immediate dilution and, as a result, our stock price may decline. Q4, 2024
Revolution Medicines Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $8.48B | 27.70 | 17.66% | 0.17% | 16.80% | 39.99% | |
58 Neutral | $5.43B | 38.75 | 3.48% | 1.13% | 0.29% | -48.98% | |
53 Neutral | $5.14B | 3.23 | -45.01% | 2.85% | 17.55% | -0.69% | |
52 Neutral | $6.89B | ― | -36.68% | ― | -100.00% | 5.49% | |
51 Neutral | $7.68B | 1.93 | -7.10% | ― | -20.84% | -102.48% | |
48 Neutral | $6.56B | ― | -47.71% | ― | 99.19% | 48.43% | |
47 Neutral | $6.29B | ― | 35.68% | ― | -41.71% | -9.37% |
* Healthcare Sector Average
Performance Comparison
RVMD
Revolution Medicines
36.98
-0.92
-2.43%
TFX
Teleflex
122.96
-79.97
-39.41%
ENSG
The Ensign Group
147.46
28.75
24.22%
BPMC
Blueprint Medicines
100.06
-2.30
-2.25%
BBIO
BridgeBio Pharma
33.10
5.28
18.98%
ROIV
Roivant Sciences
10.76
-0.07
-0.65%
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.