Revolution Medicines shares dropped after merger discussions with Merck ended without an agreement. The companies couldn’t settle on a price.
Revolution Medicines, Inc., RVMD
The Wall Street Journal reported the talks had cooled. Sources close to the negotiations confirmed the breakdown.
Earlier this month, reports emerged that Merck was pursuing Revolution Medicines. The Financial Times had pegged the deal value at $28 billion to $32 billion.
That acquisition is no longer happening. At least not right now.
Revolution Medicines declined to comment on the situation. Merck has not responded to requests for comment.
The stock had climbed 47.68% year-to-date before news of the failed talks emerged. Investors had been anticipating a buyout premium.
Revolution Medicines currently has a market capitalization of approximately $22.7 billion. That’s below the reported deal range.
Merck’s interest centered on daraxonrasib. This experimental cancer treatment is in late-stage clinical trials.
The FDA has given the drug fast-track review status. This designation accelerates the approval timeline.
Revolution Medicines is developing daraxonrasib for pancreatic cancer treatment. Industry analysts estimate this represents a multi-billion-dollar market opportunity.
The company has multiple milestones scheduled for 2026. These clinical developments will proceed independent of merger discussions.
Some market watchers believe negotiations could restart. Price disagreements don’t always mean permanent endings in dealmaking.
Other pharmaceutical companies might step in. Revolution Medicines’ drug pipeline makes it an attractive acquisition target.
Certain investors are treating the breakdown as a discount opportunity. They’re betting on Revolution Medicines’ value as a standalone company.
The biotech had been showing technical buy signals before the merger news hit. Average daily trading volume runs around 3.3 million shares.
Analysts have pointed to the company’s clinical progress as justification for higher valuations. That thesis exists whether a takeover materializes or not.
The market will now shift focus to Revolution Medicines’ data releases. The 2026 calendar includes several potential catalysts.
Wall Street sources indicated talks could resume if circumstances change. Another buyer could also emerge with a better offer.
Revolution Medicines trades at roughly $22.7 billion in market value based on recent data. The company was founded to develop targeted oncology therapies.
The post Revolution Medicines (RVMD) Stock Falls as Merck Walks Away From Takeover Deal appeared first on Blockonomi.
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