Revolution Medicines has become the subject of significant acquisition speculation ahead of the 2026 J.P. Morgan Health Conference. According to a report by The Financial Times, Merck is in discussions to acquire the California-based biotech company, with an offer reportedly between $28 billion and $32 billion, as relayed by an anonymous source familiar with the matter. Revolution Medicines currently holds a market capitalization close to $20.8 billion.
The Financial Times also indicated that other major pharmaceutical companies are interested in acquiring Revolution Medicines, although it remains uncertain whether any transaction will ultimately take place or which company might succeed in securing the deal.
On Friday morning, shares of Revolution Medicines rose 12.7% in pre-market trading to $121 per share, up from Thursday’s closing price of $107.39.
Reports regarding Merck's interest emerged shortly after The Wall Street Journal noted that AbbVie was another potential suitor for Revolution Medicines. However, AbbVie has since denied involvement in acquisition talks. Following this denial, AbbVie's shares closed down 4% at $224.13 on Thursday.
If an acquisition occurs, the successful buyer would obtain Revolution’s pipeline of targeted therapies for RAS-driven cancers. The company's lead drug candidate, daraxonrasib, is designed as a selective oral inhibitor targeting only the active state of the RAS protein—a critical factor in certain cancer pathways. Daraxonrasib is currently undergoing pivotal trials for pancreatic and non-small cell lung cancers.
Last September, daraxonrasib achieved a confirmed objective response rate (ORR) of 29% in a Phase I trial for second-line treatment of pancreatic cancer patients with RAS mutations. In another Phase I study focused on first-line pancreatic cancer therapy, it posted a 47% ORR. Later that month, Revolution Medicines received a Commissioner’s National Priority Voucher from the FDA for daraxonrasib, potentially expediting its regulatory review process.
These developments come as biopharma firms prepare for the J.P. Morgan Healthcare Conference—an annual event seen as setting industry direction and often marked by significant deal announcements. While Revolution Medicines has not confirmed any ongoing deal negotiations ahead of the conference, it is scheduled to present on Monday morning at the event.
