Revolution Medicines falls premarket after doubling capital raise to $2 bln

Revolution Medicines

15/04/2026 12:41

** Shares of Revolution Medicines RVMD.O down 1.2% premarket at $145.25 after above-target capital raise

** RVMD early Weds said it sold ~10.6 mln shares at $142 for gross proceeds of $1.5 bln and priced $500 mln 0.5% 7-yr convertible bonds (CBs)

** Co had planned to offer $750 mln in stock and $250 mln CBs

** RVMD shares rose nearly 8% to record high close of $147.01 on Tues, adding to 41% surge on Mon after co said its experimental pill, daraxonrasib, helped patients live nearly twice as long as those treated with chemotherapy in a keenly anticipated late-stage trial

** It intends to use net proceeds from offerings for general purposes, including R&D, expenses relating to potential commercialization of its product candidates, among other uses

** JP Morgan, TD Cowen and Guggenheim Securities joint bookrunners for the offerings

** Redwood City, California-based RVMD has ~198.2 mln shares outstanding for $29 bln current market cap

** Through Tues close, stock up ~85% YTD and has quadrupled over the past 12 months

** 9 analysts rate the stock strong buy", the other 12 rate "buy"; median PT $162, according to LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))