Revolution Medicines: A Big Pipeline In Need Of Big Data (NASDAQ:RVMD)

Topline Abstract

Revolution Medicines, Inc. (NASDAQ:RVMD) burst onto the scene with an IPO again in early 2020, they usually’ve fairly nicely held floor on a multi-billion-dollar valuation for nearly 4 years. Whereas they’ve an especially diversified pipeline of medication focusing on a who’s-who of classical signaling molecules, they’re nonetheless doing numerous feeling round for his or her large flagship pipeline venture, they usually’re doing so at large expense. Although they’ve defied bearish predictions to this point, it is nonetheless a really excessive danger, comparatively low reward proposition to take a position right now. Let me inform you why.

Pipeline Overview

RMC-4630

RVMD made its splash a couple of years in the past with one of many first inhibitors of a phosphatase referred to as SHP2 to be moved towards scientific trials. This drug candidate is named RMC-4630, and it confirmed some early promise in preclinical work and in an early scientific readout of RAS-addicted cancers. Including RMC-4630 to the KRAS G12C inhibitor sotorasib confirmed modest response charges in sufferers with beforehand handled, KRAS G12C-positive non-small cell lung most cancers, as nicely.

Whereas RMC-4630 has moved furthest in RVMD’s pipeline, it additionally has probably the most questions. Following a reappraisal by accomplice Sanofi, their developmental partnership was severed, and now per the corporate’s newest steerage, any additional improvement of this SHP2 inhibitor might be determined primarily based on a whole readout of their ongoing RMC-4630-03 examine. Of their newest earnings name, RVMD all however distanced themselves completely from their authentic pipeline, together with RMC-4630, in favor of pursuing various KRAS therapies.

RAS(ON) inhibitors

RVMD has moved decisively towards the event of so-called “RAS(ON)” inhibitors. This refers to brokers that preferentially inhibit the lively type of KRAS, versus the primary era of KRAS inhibitors (sotorasib and adagrasib) that bind to the inactive kind, so-called “RAS(OFF)” inhibitors. That is achieved by first binding a chaperone protein referred to as cyclophilin A, after which forming a triplet complicated together with lively KRAS, blocking its motion on different molecules within the cell.

RVMD has a complete suite of various KRAS inhibitors, together with RMC-6291, RMC-9805, RMC-0708, and RMC-8839, which goal particular types of mutant KRAS (G12C, G12D, Q61H, and G13C, respectively). They’re additionally working enthusiastically on RMC-6236, which has been proven in preclinical research to have the ability to block any mutation of KRAS, in addition to wildtype protein.

At present, RVMD are guiding that we are able to anticipate scientific information for his or her G12C drug (RMC-6291) and the pan-RAS inhibitor (RMC-6236) later this 12 months, together with findings that this 12 months’s AACR-NCI-EORTC Worldwide Convention on Molecular Targets and Most cancers Therapeutics going down October 7-10.

Whereas these tasks are younger, the potential may be very excessive right here. Focusing on KRAS G12C by itself represented a giant accomplishment for oncology. It is taken over 30 years to reach at an lively drug obtainable for sufferers to focus on this molecule, and sotorasib and adagrasib are restricted solely to this very particular kind. Far more widespread mutations like G12D stay untouched, and that is essential for illnesses like colorectal most cancers and pancreatic most cancers.

Whereas it is early days nonetheless, there’s rather a lot to be excited for right here.

Monetary Overview

Per RVMD’s Q2 2023 earnings report, the corporate held $380 million in money and equivalents and $529 million in marketable securities, with whole present property reaching $922 million. This was up from $660 million in This fall 2022, owing largely to a $300 million infusion of money from a public inventory providing again in March 2023.

One other large latest occasion for RVMD was the acquisition of EQRx, Inc. (EQRX) in an all-stock transaction that may deliver into play EQRX



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