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Revolution Medicines (RVMD)
NASDAQ:RVMD
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Revolution Medicines
(NASDAQ:RVMD)
Rating:52Neutral
Price Target:―
Positive Factors
Cash position
Revolution Medicines has a solid cash position, which should provide flexibility for late-stage development and early-stage deals.
Market opportunity
The potential market opportunity for daraxonrasib in metastatic pancreatic cancer is estimated to be approximately $7.6 billion.
Pipeline development
There is continued positivity towards the company as the pipeline development progresses alongside building in-house commercialization capabilities.
Negative Factors
Competition
The RAS pathway drug development is highly competitive, presenting a challenging landscape for RVMD.
Financial performance
The EPS for 2Q25 was significantly lower than expected, primarily because of higher than anticipated research and development and SG&A expenses.
Net loss guidance
The expected GAAP net loss for 2025 has increased to $1.03-1.09B from the previous guidance of $840-900M due to the decision to pursue global development and commercialization independently.
Revolution Medicines (RVMD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.15B
Dividend YieldN/A
Average Volume (3M)2.47M
Price to Earnings (P/E)―
Beta (1Y)1.23
Revenue Growth-100.00%
EPS Growth5.49%
CountryUS
Employees616
SectorHealthcare
Sector Strength37
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.31
Shares Outstanding186,267,550
10 Day Avg. Volume1,408,418
30 Day Avg. Volume2,470,089
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.66
Enterprise Value/Revenue17.91
Enterprise Value/Gross Profit39.69
Enterprise Value/Ebitda-6.00
Forecast
1Y Price Target
$66.86Price Target Upside91.30% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
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 Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: -4.69%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in Revolution Medicines' clinical pipeline and financial strategy, with Breakthrough Therapy designations and robust financial backing. However, increased expenses and net loss, along with uncertain commercialization timelines, present challenges.Q2-2025 Updates
Positive Updates
Breakthrough Therapy Designations
Daraxonrasib received Breakthrough Therapy designation from the FDA for previously treated metastatic pancreatic cancer with KRAS G12 mutations. Elironrasib was granted Breakthrough Therapy designation for locally advanced or metastatic KRAS G12C non-small cell lung cancer following prior systemic therapy.
Strong Financial Position
Revolution Medicines reported $2.1 billion in cash and investments, bolstered by a $2 billion partnership with Royalty Pharma, providing flexible capital without equity dilution.
Pipeline Progress
Successful advancement of clinical programs, including daraxonrasib in pancreatic and lung cancers, with multiple trials underway and strategic collaborations enhancing development.
Partnership with Summit Therapeutics
New collaboration to evaluate combinations of Summit's ivonescimab with RevMed's RAS(ON) inhibitors, aiming to enhance therapeutic impact.
Negative Updates
Increased Operating Expenses
R&D expenses increased to $224.1 million from $134.9 million year-over-year, and G&A expenses rose to $40.6 million from $21.7 million, driven by clinical trial costs and personnel expansion.
Net Loss Increase
Reported net loss for Q2 2025 was $247.8 million, up from $133.2 million in Q2 2024, primarily due to higher operating expenses.
Uncertain Commercialization Timeline
While data readouts are expected in 2026, no specific guidance was provided on commercialization timelines, leaving some uncertainty about market entry.
Company Guidance
During the Revolution Medicines Q2 2025 earnings call, the company provided guidance on several key metrics and strategic priorities. They highlighted their compelling pipeline of three clinical stage RAS(ON) inhibitors—daraxonrasib, elironrasib, and zoldonrasib—and discussed progress in their pancreatic and non-small cell lung cancer programs. Daraxonrasib received Breakthrough Therapy designation from the FDA for previously treated metastatic pancreatic cancer with KRAS G12 mutations, and the RASolute 302 global Phase III trial is expected to complete enrollment this year with a data readout anticipated in 2026. The company also announced a partnership with Royalty Pharma, securing $2 billion in committed capital to support their clinical development and commercialization plans. Revolution Medicines updated their 2025 financial guidance, projecting a full-year GAAP net loss between $1.03 billion and $1.09 billion, reflecting increased R&D and G&A expenses due to global development and commercialization initiatives.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 |
| EBITDA | -589.02M | -430.58M | -239.47M | -179.75M | -101.91M |
| Net Income | -600.09M | -436.37M | -248.71M | -179.77M | -108.16M |
Balance Sheet | |||||
| Total Assets | 2.56B | 2.06B | 811.93M | 737.99M | 567.40M |
| Cash, Cash Equivalents and Short-Term Investments | 2.29B | 1.85B | 644.94M | 577.05M | 440.74M |
| Total Debt | 135.84M | 87.94M | 64.20M | 66.63M | 32.66M |
| 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
34.95
Price Trends
38.52
Negative
38.15
Negative
42.16
Negative
Market Momentum
-0.53
Positive
36.02
Neutral
43.83
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 34.95 is below the 20-day moving average (MA) of 37.58, below the 50-day MA of 38.52, and below the 200-day MA of 42.16, indicating a bearish trend. The MACD of -0.53 indicates Positive momentum. The RSI at 36.02 is Neutral, neither overbought nor oversold. The STOCH value of 43.83 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 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $9.12B | 28.55 | 17.57% | 0.16% | 17.71% | 41.83% | |
71 Outperform | $5.08B | 27.04 | 4.36% | 1.18% | 1.11% | -23.73% | |
54 Neutral | $7.92B | 1.93 | -8.56% | ― | -38.94% | -104.46% | |
52 Neutral | $7.15B | ― | -46.61% | ― | -100.00% | 5.49% | |
52 Neutral | $9.34B | ― | 35.68% | ― | 7.62% | -55.29% | |
51 Neutral | $7.39B | 0.36 | -62.86% | 2.36% | 15.48% | -2.68% | |
50 Neutral | $8.37B | ― | -47.71% | ― | 99.19% | 48.43% |
* Healthcare Sector Average
Performance Comparison
RVMD
Revolution Medicines
34.95
-7.95
-18.53%
TFX
Teleflex
115.49
-112.18
-49.27%
ENSG
The Ensign Group
159.26
18.26
12.95%
BPMC
Blueprint Medicines
129.46
35.56
37.87%
BBIO
BridgeBio Pharma
45.95
21.52
88.09%
ROIV
Roivant Sciences
11.55
0.43
3.87%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.