Revolution Medicines announced on Apr. 16 that it has doubled its planned stock offering to $2 billion, following the release of positive late-stage clinical trial results for its pancreatic cancer drug. The California-based biotechnology company said the new offering could result in more than 10.5 million shares of common stock being sold.
The announcement comes after Revolution’s RASolute 302 study showed that patients with pancreatic ductal adenocarcinoma treated with its RAS blocker, daraxonrasib, had an overall survival of 13.2 months compared to 6.7 months for those receiving chemotherapy. This significant improvement led to a surge in Revolution’s share price from around $96 before the data was released to over $152 per share, representing a rally of about 40%.
CEO Mark Goldsmith said these findings are “potentially transformative” for patients and “underscore daraxonrasib’s potential to redefine the treatment landscape.” Goldsmith also noted plans to submit the data to the Food and Drug Administration for approval.
Financial analysts have responded positively as well. Stifel told investors that daraxonrasib’s overall survival benefit could justify premium pricing, estimating a monthly cost between $30,547 and $37,318 per patient and annual revenue ranging from approximately $237,556 to $269,051 per patient. “OS is the main monthly-price driver here,” Stifel said. “The newly disclosed OS benefit is the main reason daraxonrasib now screens into a more clearly premium pricing corridor.”
Revolution expects to complete its common stock offering by week’s end according to Wednesday's release.
