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Merck Ends Revolution Medicines Takeover Talks After Valuation Standoff

Interest centered on Revolution’s late-stage pan‑RAS drug daraxonrasib, a key driver of the biotech’s standalone prospects.

The Merck logo is seen at a gate to the Merck & Co campus in Rahway, New Jersey, U.S., July 12, 2018. REUTERS/Brendan McDermid/File Photo
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With a market cap of around $23bn, Revolution has seen its stock climb over the year on the back of its promising oncology portfolio. Credit: Tada Images via Shutterstock.com.

Overview

  • The Wall Street Journal, citing people familiar with the matter, reported that Merck walked away after failing to agree on price.
  • Earlier Financial Times reporting had pegged a potential Merck bid for Revolution Medicines in the $28 billion to $32 billion range.
  • Revolution Medicines shares fell about 22.7% in premarket trading to roughly $90.88, leaving its market value near $23 billion and below the rumored offer range.
  • Merck’s focus was daraxonrasib, an oral pan‑RAS inhibitor in two Phase 3 trials for pancreatic cancer and non‑small cell lung cancer that holds an expedited FDA designation.
  • Sources indicated discussions could restart or another bidder could emerge, while both companies declined to comment on the status of negotiations.