After Revolution Medicines’ drug candidate doubled survival in a Phase 3 pancreatic cancer study, the biotech is hoping to attract more investor money, with new plans for a $2 billion stock and debt offering.
Just hours after its commanding late-stage victory in pancreatic cancer on Monday, Revolution Medicines announced a stock offering that would have enriched its coffers by $1 billion. On Wednesday, the California biotech doubled that target to $2 billion, an offering that could see investors snap up more than 10.5 million shares of the company’s common stock.
This latest raise prices Revolution at $142 per share, slightly lower than its closing price of $152.54. Before releasing its Phase 3 pancreatic cancer results, Revolution had been hovering at a much lower price range, settling at around $96 apiece before the readout sent its shares on a 40% rally.
In the late-stage RASolute 302 study, patients treated with Revolution’s RAS blocker daraxonrasib achieved overall survival (OS) of 13.2 months—more than double the 6.7-month OS in comparators on chemotherapy.
CEO Mark Goldsmith called these findings “potentially transformative” for patients with pancreatic ductal adenocarcinoma, noting that they “underscore daraxonrasib’s potential to redefine the treatment landscape.” Revolution on Monday announced plans to submit these data to the FDA with an eye toward approval.
Analysts also viewed Revolution’s data positively, with Stifel on Tuesday telling investors that daraxonrasib’s OS “looks strong enough to support a more clearly premium pricing.” In particular, the analysts said Revolution could reasonably price a monthly course of daraxonrasib at as low as $30,547 or as high as $37,318, which would translate to a per-patient revenue range of $237,556 to $269,051.
“OS is the main monthly-price driver here,” Stifel explained. “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 the end of the week, according to Wednesday’s release.
