Revolution Medicines says independent proxy recommend ‘FOR’ EQRx acquisition

Revolution Medicines (RVMD) announced that leading independent proxy advisory firms, Institutional Shareholder Services and Glass Lewis & Co, have recommended Revolution Medicines stockholders vote “FOR” the issuance of Revolution Medicines shares in the previously announced all-stock acquisition of EQRx (EQRx) at the special meeting of stockholders scheduled for November 8, 2023. In their respective reports, ISS and Glass Lewis view the proposed transaction as favorable to Revolution Medicines stockholders. The acquisition will add the significant cash resources held by EQRx and strengthen Revolution Medicines’ balance sheet, allowing the company to sustain and retain control of its research and development plans for its RAS Inhibitor pipeline. “We are pleased that ISS and Glass Lewis support our proposed acquisition of EQRx and the significant long-term value opportunity this compelling transaction provides to our stockholders,” said Mark A. Goldsmith, M.D., Ph.D., Revolution Medicines, chief executive officer and chairman. “The addition of approximately $1.1 billion to our balance sheet will increase our financial strength and enable robust investments to advance the clinical development of RMC-6236, our RASMULTI Inhibitor, RMC-6291, our RASG12C Inhibitor, and RMC-9805, our RASG12D Inhibitor. This transaction will also increase our capacity to develop our growing RAS Inhibitor pipeline in order to deliver high-impact targeted medicines to an even larger range of patients with RAS-addicted cancers.” The company also today announced the final exchange ratio for the EQRx acquisition. Each share of common stock of EQRx issued and outstanding immediately prior to the merger will be converted into the right to receive 0.1112 shares of common stock of Revolution Medicines. If the transaction is completed, Revolution Medicines expects to issue approximately 55 million shares of its common stock in connection with the merger. The company estimates that the acquisition will add approximately $1.1 billion in net cash proceeds, after estimated post-closing EQRx wind-down and transition costs, or approximately $20 per share of common stock issued in connection with the merger.