Merck Looks To Buy Cancer Drugmaker Revolution Medicines As Keytruda Nears Patent Expiry: Report

• A deal would be at least several weeks away, the report added.
• The report also highlighted that a Merck-Revolution deal might not come through as other large pharmaceutical companies have also shown interest in the Redwood City-based biotech.
• Merck is currently seeking to fortify its drug portfolio before its blockbuster cancer therapy Keytruda begins to lose patent protection in 2028.

Pharmaceutical major Merck (MRK) is reportedly in talks to buy cancer drugmaker Revolution Medicines (RVMD).

Financial Times reported on Thursday, citing people familiar with the matter, that the company is pursuing an acquisition of Revolution Medicines, though a deal is yet to be finalized. A deal would be at least several weeks away, the report added.

The report also highlighted that a Merck-Revolution deal might not come through as other large pharmaceutical companies have also shown interest in the Redwood City-based biotech.

RVMD shares jumped 18% after hours after closing 5% higher in the regular session. Meanwhile, MRK shares edged 0.4% lower after hours after closing up 2%.

Potential Suitors

Revolution Medicines is developing therapies for patients with RAS-addicted cancers. RAS-addicted cancers are prevalent malignancies, including pancreatic, colorectal, and lung cancers, driven by mutations in RAS genes. The company currently has multiple drugs in clinical development including daraxonrasib, elironrasib, zoldonrasib, and RMC-5127. Some of its investigational drugs are yet to enter human trials.

Earlier this week, The Wall Street Journal reported, citing people familiar with the matter, that AbbVie is in talks to acquire the cancer drugmaker. However, AbbVie denied the report in an emailed statement to Stocktwits and said, “AbbVie has not been in talks to acquire RevMed.”

Merck Attempts To Fortify Portfolio With Acquisitions

Merck is currently seeking to fortify its drug portfolio before its blockbuster cancer therapy Keytruda begins to lose patent protection in 2028. Keytruda generated approximately $29.5 billion in global sales for the full year 2024, accounting for about 46% of the company’s overall worldwide sales.

The company entered into a deal to acquire Cidara Therapeutics for about $9.2 billion in November. It also agreed in July to buy respiratory drug developer Verona Pharma for $10 billion as part of a broader effort to maintain revenue momentum.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around RVMD stock stayed within the ‘extremely bullish’ territory over the past 24 hours while message volume remained at ‘extremely high’ levels.

Sentiment around MRK stock also rose from ‘bearish’ to ‘bullish’ territory, while message volume rose from ‘low’ to ‘high’ levels.

A Stocktwits user highlighted that there is no confirmation of a buyout “yet.”

Another voiced doubts, noting that AbbVie denied acquisition talks previously this week.

While RVMD shares have gained 142% over the past 12 months, MRK has gained 11%.

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