Merck and Revolution Medicines have ended acquisition talks after failing to agree on a purchase price, according to a report by The Wall Street Journal. Anonymous sources cited in the article indicated that while negotiations have stalled, there is still a possibility the two companies could resume discussions or that other potential buyers may step in.
Earlier this month, The Financial Times reported that Merck was considering an offer for Revolution Medicines with proposed prices ranging from $28 billion to $32 billion. These reports led to a 12.7% increase in Revolution’s share price, which has remained elevated since then. As of after-hours trading, Revolution shares were priced at $119.49, up 1.54% from Friday's closing value of $117.68.
In addition to Merck, AbbVie was also reportedly interested in acquiring Revolution Medicines, with offers rumored as high as $20 billion earlier in January. However, AbbVie later denied these claims.
Interest in Revolution appears largely centered on its lead drug candidate daraxonrasib, an oral selective RAS blocker designed for patients with RAS-mutant cancers. Phase I trial results published in September 2025 showed a confirmed objective response rate (ORR) of 29% as a second-line treatment for pancreatic cancer patients with RAS mutations and 47% ORR as a first-line therapy.
Daraxonrasib received an FDA Commissioner’s National Priority Voucher in October 2025, potentially reducing its regulatory review period from the standard 10–12 months down to just 1–2 months. Revolution has outlined plans for two major clinical readouts related to pancreatic cancer during the first half of 2026 and intends to launch two additional studies later in the year—one focused on pancreatic cancer and another targeting non-small cell lung cancer.
For Merck, acquiring Revolution would have provided an opportunity to offset revenue losses anticipated after its flagship drug Keytruda loses exclusivity protection. At the J.P. Morgan Healthcare Conference held recently, CEO Rob Davis stated: “We’re not limited from a balance sheet perspective,” adding that Merck has “multi tens of billions of dollars” available for deals.
