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1. Company Snapshot

1.a. Company Description

Revolution Medicines, Inc., a clinical-stage precision oncology company, focuses on developing therapies to inhibit frontier targets in RAS-addicted cancers.The company is developing RMC-4630, an inhibitor of SHP2, which is in Phase 1/2 clinical trial for the treatment of solid tumors, such as gynecologic and colorectal cancer tumors.It also develops RMC-5845, a selective inhibitor of SOS1, a protein that converts RAS (OFF) to RAS (ON) in cells; and RMC-5552, a hyperactivated selective inhibitor of mTORC1 signaling in tumors.


In addition, the company is developing RMC-6291, a mutant-selective inhibitor of KRASG12C(ON) and NRASG12C(ON); and RMC-6236, a RAS-selective inhibitor of multiple RAS(ON) variants.Further, it develops RAS(ON) Inhibitors targeting KRASG13C(ON) and KRASG12D(ON).The company has a collaboration agreement with Sanofi for the research and development of SHP2 inhibitors, including RMC-4630.


Revolution Medicines, Inc.was incorporated in 2014 and is headquartered in Redwood City, California.

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1.b. Last Insights on RVMD

Revolution Medicines' recent performance was positively driven by advancements in its RAS(ON) pipeline, particularly with daraxonrasib, which received FDA Breakthrough Therapy Designation, Orphan Drug Designation, and a Commissioner's National Priority Voucher. The company initiated a Phase 3 clinical trial, RASolute 304, and remains on track to initiate RASolute 303. New leadership appointments strengthened global development and commercialization capabilities. Despite a wider-than-expected Q3 loss, the company's progress in its clinical trials and pipeline advancements are encouraging (Source: Q3 2025 Earnings Call).

1.c. Company Highlights

2. Revolution Medicines' Q3 2025 Earnings: A Closer Look

Revolution Medicines reported a net loss of $305.2 million for the third quarter of 2025, with an actual EPS of -1.61, missing estimates of -1.39. The company's financial position remains strong, with $1.93 billion in cash and investments as of the end of the quarter. The company reiterated its 2025 financial guidance, expecting a full-year GAAP net loss of $1.03-1.09 billion. Revenue growth is expected to surge by 765.4% next year, according to analyst estimates.

Publication Date: Nov -10

📋 Highlights
  • Clinical Progress:: Phase I long-term data showed median progression-free survival of 8 months and overall survival of 13.1-15.6 months in second-line metastatic pancreatic cancer.
  • Phase III Trials Expansion:: Three Phase III trials (RASolute 302, 303, 304) advancing in metastatic and adjuvant pancreatic cancer, with 304 evaluating adjuvant daraxonrasib post-surgery.
  • Financial Strength:: $1.93 billion in cash reserves as of Q3 2025, alongside a $305.2 million net loss for the quarter and $1.03-1.09 billion GAAP net loss guidance for 2025.
  • Leadership & Commercial Readiness:: Key appointments (Dr. Alan Sandler, Alicia Gardner) and global market-shaping activities to support future product launches.
  • Combination Therapies:: Exploring daraxonrasib with pembrolizumab and chemotherapy to improve progression-free/overall survival, leveraging preclinical synergy data.

Clinical Progress and Pipeline Advancements

The company is making progress in its clinical programs for RAS-addicted cancers, with its lead asset, daraxonrasib, receiving three special designations from the FDA for treating pancreatic cancer. The company is advancing several clinical trials, including Phase III trials of daraxonrasib in second-line and first-line metastatic pancreatic cancer, as well as in the adjuvant setting for resectable pancreatic cancer. As Mark Goldsmith, one of the company's executives, noted, the data on zoldonrasib plus daraxonrasib in preclinical models is encouraging, and the company believes RAS(ON) inhibitor doublets are a compelling option.

Valuation and Growth Prospects

With a P/S Ratio of 0.0 and an EV/EBITDA of -11.44, the market is pricing in significant growth expectations. The company's ROE and ROIC are both negative, at -49.25% and -51.23%, respectively. However, the expected revenue growth of 765.4% next year suggests that the company is poised for significant expansion. The current valuation metrics suggest that the market is anticipating a turnaround in the company's financial performance.

Commercial Readiness and Future Plans

The company has made key appointments to support its growth, including Dr. Alan Sandler as Chief Development Officer and Alicia Gardner as Senior Vice President and General Manager of the U.S. region. The company is confident in its ability to attract the right talent for a successful launch and is engaged in market-shaping activities. The company is also exploring combination regimens, including with pembrolizumab, to maximize clinical benefit.

Conclusion on Valuation Metrics

Given the current valuation metrics, including a P/B Ratio of 7.23 and a Net Debt / EBITDA of 0.06, it is clear that the market is pricing in a certain level of growth and success for Revolution Medicines. As the company continues to advance its pipeline and commercialization capabilities, investors will be watching closely to see if the company can deliver on its promises.

3. NewsRoom

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American Century Companies Inc. Has $16.72 Million Stock Holdings in Revolution Medicines, Inc. $RVMD

Dec -03

Source: defenseworld.net

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AXQ Capital LP Takes $282,000 Position in Revolution Medicines, Inc. $RVMD

Nov -25

Source: defenseworld.net

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Revolution Medicines, Inc. (RVMD) Presents at Jefferies London Healthcare Conference 2025 Transcript

Nov -18

Source: seekingalpha.com

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Revolution Medicines, Inc. (RVMD) Presents at Guggenheim Securities 2nd Annual Healthcare Innovation Conference Transcript

Nov -11

Source: seekingalpha.com

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Revolution Medicines Posts Wider-Than-Expected Loss in Q3, Sales Nil

Nov -06

Source: zacks.com

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Nisa Investment Advisors LLC Sells 1,221 Shares of Revolution Medicines, Inc. $RVMD

Nov -06

Source: defenseworld.net

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Revolution Medicines, Inc. (RVMD) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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Revolution Medicines Reports Third Quarter 2025 Financial Results and Update on Corporate Progress

Nov -05

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.43%)

6. Segments

Novel Targeted Therapies

Expected Growth: 10.43%

Revolution Medicines' novel targeted therapies drive 10.43% growth, fueled by increasing adoption in cancer treatment, advancements in precision medicine, and a strong pipeline of innovative candidates. Additionally, strategic partnerships, expanding research and development efforts, and a growing demand for personalized therapies contribute to the company's rapid expansion.

7. Detailed Products

RMC-4630

RMC-4630 is a small molecule inhibitor of SHP2, a key node in multiple signaling pathways, including RAS and PI3K/AKT, that are commonly altered in cancer.

RMC-5552

RMC-5552 is a potent and selective inhibitor of mTORC1, a key regulator of cell growth and metabolism.

RMC-6236

RMC-6236 is a small molecule inhibitor of KRAS(G12C), a common oncogenic mutation in non-small cell lung cancer and other solid tumors.

RMC-6291

RMC-6291 is a small molecule inhibitor of mTORC1/2, a key regulator of cell growth and metabolism.

RMC-4620

RMC-4620 is a small molecule inhibitor of SHP2, a key node in multiple signaling pathways, including RAS and PI3K/AKT, that are commonly altered in cancer.

8. Revolution Medicines, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Revolution Medicines, Inc. has a moderate threat of substitutes due to the presence of alternative treatments and therapies for cancer and genetic diseases.

Bargaining Power Of Customers

Revolution Medicines, Inc. has a low bargaining power of customers due to the specialized nature of its products and the lack of alternative options for patients.

Bargaining Power Of Suppliers

Revolution Medicines, Inc. has a moderate bargaining power of suppliers due to the presence of multiple suppliers for raw materials and equipment.

Threat Of New Entrants

Revolution Medicines, Inc. has a high threat of new entrants due to the growing demand for cancer and genetic disease treatments and the presence of venture capital funding for biotech startups.

Intensity Of Rivalry

Revolution Medicines, Inc. operates in a highly competitive industry with many established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 4.59%
Debt Cost 3.95%
Equity Weight 95.41%
Equity Cost 11.20%
WACC 10.87%
Leverage 4.82%

11. Quality Control: Revolution Medicines, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Ionis Pharmaceuticals

A-Score: 4.2/10

Value: 6.0

Growth: 1.1

Quality: 4.5

Yield: 0.0

Momentum: 10.0

Volatility: 3.7

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Janux Therapeutics

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Quality: 7.9

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Revolution Medicines

A-Score: 3.7/10

Value: 6.4

Growth: 1.8

Quality: 6.4

Yield: 0.0

Momentum: 4.0

Volatility: 3.7

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Amicus Therapeutics

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Value: 4.4

Growth: 7.6

Quality: 3.8

Yield: 0.0

Momentum: 1.0

Volatility: 5.0

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Denali Therapeutics

A-Score: 3.3/10

Value: 6.8

Growth: 3.7

Quality: 6.2

Yield: 0.0

Momentum: 0.5

Volatility: 2.3

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Iovance Bio

A-Score: 3.1/10

Value: 8.2

Growth: 5.7

Quality: 3.9

Yield: 0.0

Momentum: 0.0

Volatility: 1.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

79.64$

Current Price

79.64$

Potential

-0.00%

Expected Cash-Flows