Revolution Medicines (RVMD, Financial) unveiled new clinical findings for their drug zoldonrasib, or RMC-9805, a specific RAS(ON) G12D inhibitor, administered solo in patients suffering from KRAS G12D mutant non-small cell lung cancer. These findings were presented at the American Association for Cancer Research Annual Meeting in Chicago, underscoring the potential of the treatment.
The latest data show that zoldonrasib, an oral medication, is safe, well-tolerated, and exhibits promising early antitumor effects in lung cancer patients. This follows earlier positive results in pancreatic cancer patients, according to insights from Mark A. Goldsmith, the CEO of Revolution Medicines. The current results bolster the case for continued exploration of zoldonrasib both individually and in combination therapies to combat difficult cancers.
The RMC-9805-001 Phase 1 study, an open-label trial, evaluated zoldonrasib in patients with advanced tumors featuring a KRAS G12D mutation. By December 2024, 90 patients were administered a recommended Phase 2 dose of 1200 mg daily. The safety profile was favorable, aligning with previous pancreatic studies. Common mild adverse effects included nausea and rash, with a high dose intensity of 98%. Efficacy assessments in 18 lung cancer patients showed a 61% response rate and an 89% disease control rate. Revolution Medicines' stock has risen 6%, currently trading at $41.10.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for Revolution Medicines Inc (RVMD, Financial) is $72.73 with a high estimate of $88.00 and a low estimate of $59.00. The average target implies an upside of 76.10% from the current price of $41.30. More detailed estimate data can be found on the Revolution Medicines Inc (RVMD) Forecast page.
Based on the consensus recommendation from 13 brokerage firms, Revolution Medicines Inc's (RVMD, Financial) average brokerage recommendation is currently 1.5, indicating "Buy" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Revolution Medicines Inc (RVMD, Financial) in one year is $0.35, suggesting a downside of 99.15% from the current price of $41.3. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Revolution Medicines Inc (RVMD) Summary page.
RVMD Key Business Developments
Release Date: February 26, 2025
- Cash and Investments: $2.3 billion at the end of Q4 2024, including $823 million from an equity offering.
- R&D Expenses: $188.1 million for Q4 2024, up from $148.5 million in Q4 2023.
- G&A Expenses: $28.2 million for Q4 2024, down from $32.2 million in Q4 2023.
- Net Loss: $194.6 million for Q4 2024, compared to $161.5 million in Q4 2023.
- 2025 Financial Guidance: Expected GAAP net loss between $840 million and $900 million, including stock-based compensation of $115 million to $130 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Revolution Medicines Inc (RVMD, Financial) has made substantial progress in advancing its RAS-focused investigational drugs, particularly with promising monotherapy clinical data for daraxonrasib in pancreatic ductal adenocarcinoma (PDAC) and non-small cell lung cancer.
- The company has introduced three clinical-stage RAS(ON) inhibitors, each with a unique and promising clinical profile, showcasing its innovative capabilities in RAS biology.
- Revolution Medicines Inc (RVMD) has initiated its first Phase III registrational trial and reached commercial-scale manufacturing of daraxonrasib, indicating strong progress towards potential market entry.
- The company has formed strategic collaborations to expand treatment strategies, including partnerships with Tango Therapeutics and Aethon Therapeutics, enhancing its pipeline and research capabilities.
- Revolution Medicines Inc (RVMD) ended 2024 with a strong financial position, holding $2.3 billion in cash and investments, which is projected to fund operations into the second half of 2027.
Negative Points
- Revolution Medicines Inc (RVMD) reported a net loss of $194.6 million for the fourth quarter of 2024, an increase from the previous year, primarily due to higher operating expenses.
- The company anticipates a significant GAAP net loss for 2025, estimated between $840 million and $900 million, driven by increased expenses associated with clinical development programs and commercial preparation efforts.
- There is uncertainty regarding the regulatory approval process, particularly for accelerated approval based on progression-free survival (PFS) in pancreatic cancer, which could impact the company's timeline for market entry.
- Revolution Medicines Inc (RVMD) faces challenges in balancing the rapid advancement of multiple clinical trials with the need to avoid redundant studies and ensure the best long-term options for patients.
- The company is navigating a competitive environment in the RAS inhibitor space, which requires swift execution to maintain its leadership position and avoid being outpaced by competitors.
