Revolution Medicines Stock Drops After-Hours On AbbVie Denying Acquisition Talks

• Sources told the newspaper that a deal could come together soon provided the talks don’t face any hurdles.
• According to the report, Revolution has also drawn interest from other suitors. 
• AbbVie denied the report in an emailed statement to Stocktwits.

Shares of Revolution Medicines (RVMD) closed up 29% on Wednesday following reports that AbbVie (ABBV) is in advanced talks to buy the cancer drug manufacturer.

However, shares fell 14% after hours once AbbVie denied being in talks with Revolution Medicines. “AbbVie has not been in talks to acquire RevMed,” a company spokesperson told Stocktwits in an emailed statement. ABBV shares, likewise, closed up 4% in the regular session and fell about 1% after hours.

The Wall Street Journal reported on Wednesday, citing people familiar with the matter, that AbbVie is in talks to acquire the cancer drug maker. Though the newspaper couldn’t learn how much AbbVie is offering for the company, it noted that a deal could still value the company at around $20 billion or more.

Sources told the newspaper that a deal could come together soon provided the talks don’t face any hurdles. According to the report, Revolution has also drawn interest from other suitors.

AbbVie’s Portfolio Expansion Efforts

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 also yet to enter human trials.

AbbVie, meanwhile, reaps the most revenue from its immunology portfolio including its FDA-approved psoriasis drug Skyrizi and arthritis drug Rinvoq. Its oncology portfolio revenue is relatively smaller, with drugs including Imbruvica and Venclexta. In 2024, the company completed its acquisition of ImmunoGen for about $10 billion in a bid to expand its cancer portfolio with Immunogen’s ovarian cancer therapy called Elahere.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around RVMD jumped from ‘bullish’ to ‘extremely bullish’ territory while message volume rose from ‘high’ to ‘extremely high’ levels.

Sentiment around ABBV stock also rose from ‘bullish’ to ‘extremely bullish’ territory, while message volume remained unchanged at ‘high’ levels.

A Stocktwits user, however, expressed doubts about the deal going through.

Another highlighted “a great short opportunity.”

While RVMD shares have gained 132% over the past 12 months, ABBV has gained 30%. 

Read More: Olaplex Shares Rally On Potential Takeover Offer From Germany’s Henkel

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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