Full Press Release Details
Revolution Medicines Enters Into $2 Billion Flexible Funding Agreement with Royalty Pharma to Support Global Development
and Commercialization of RAS(ON) Inhibitor Portfolio for Patients with RAS-Addicted Cancers
REDWOOD CITY, Calif., June 24, 2025 (GLOBE NEWSWIRE) Revolution Medicines, Inc. (Nasdaq: RVMD), a late-stage clinical
oncology company developing targeted therapies for patients with RAS-addicted cancers, today announced that it has partnered with Royalty Pharma on $2 billion in flexible funding to support Revolution
Medicines independent global development and commercialization strategy and operations. Revolution Medicines retains full strategic and executional control of product development and commercialization for its portfolio of RAS(ON) inhibitors in
the US and internationally, enabling the company to leverage its assets, capabilities and momentum toward establishing new global standards of care and creating value for shareholders.
Today s announcement represents a major boost to our bold vision on behalf of patients with RAS-addicted
cancers, said Mark A. Goldsmith M.D., Ph.D., chief executive officer and chairman of Revolution Medicines. This funding agreement significantly increases the financial resources we can deploy while preserving optionality as we scale our
operations to create the industry-leading global targeted medicines franchise for patients with RAS-addicted cancers based on our highly differentiated RAS(ON) inhibitor portfolio.
We are excited to announce today a groundbreaking partnership that provides Revolution Medicines with up to $2 billion of long-term capital through
a customized funding solution that facilitates the expansive development and global commercialization of its leading RAS(ON) inhibitor portfolio, said Pablo Legorreta, founder and chief executive officer of Royalty Pharma. This
partnership exemplifies a new funding paradigm for highly innovative biotech companies. In contrast to a conventional pharma partnership, this large scale and flexible funding agreement enables Revolution Medicines to retain control of the clinical
development of daraxonrasib, as well as the ability to capture significant value creation that would result from the successful clinical development and commercialization of its pipeline.
Transaction overview
The funding agreement provides for $2 billion in committed capital comprised of up to $1.25 billion in synthetic royalty monetization on sales of
daraxonrasib, the company s RAS(ON) multi-selective inhibitor, and up to $750 million in corporate debt. The agreement provides significant flexibility to Revolution Medicines with $1.25 billion of the total funding reserved as
optional to the company at its discretion, subject to the achievement of specific milestones.
Synthetic royalty details
Further details on this transaction can be found in the Current Report on Form 8-K filed by the
company today with the Securities and Exchange Commission.
As a result of entering into this funding agreement with Royalty Pharma, the company is removing its cash runway end date guidance.
Revolution Medicines management will
host an investor webcast today, June 24, at 8:00 a.m. ET (5:00 a.m. PT) to discuss this transaction. To participate in the live webcast, participants may register at https://edge.media-server.com/mmc/p/b35x58yh. A live webcast of
the call will be available on the Investors section of Revolution Medicines website at https://ir.revmed.com/events-and-presentations. Following the
live webcast, a replay will be available on the company s website for at least 14 days.
TD Securities acted as financial advisor and Latham & Watkins acted as legal advisor to Revolution Medicines. Goodwin Procter and Maiwald acted as
legal advisors to Royalty Pharma.
About Revolution Medicines, Inc.
Revolution Medicines is a late-stage clinical oncology company developing novel targeted therapies for patients with
RAS-addicted cancers. The company s R&D pipeline comprises RAS(ON) inhibitors designed to suppress diverse oncogenic variants of RAS proteins. The company s RAS(ON) inhibitors daraxonrasib (RMC-6236), a RAS(ON) multi-selective inhibitor; elironrasib (RMC-6291), a RAS(ON) G12C-selective inhibitor; and zoldonrasib
(RMC-9805), a RAS(ON) G12D-selective inhibitor, are currently in clinical development. The company anticipates that RMC-5127, a RAS(ON) G12V-selective inhibitor, will be
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act
of 1995. Any statements in this press release that are not historical facts may be considered forward-looking statements, including without limitation statements regarding the potential for daraxonrasib, zoldonrasib or other assets
within the company s pipeline to be approved by the FDA, including the indications for which they are approved; the company s development and commercialization plans for its RAS(ON) inhibitor portfolio; the company s priorities
regarding standards of care, patient reach and shareholder value; its vision on behalf of patients with RAS-addicted cancers; the financial resources available to the company, including the availability of
capital from the synthetic royalty and the corporate debt arrangement and whether the company achieves the milestones associated with certain payments thereunder; and whether the company elects to receive optional funding under the arrangement, if
available. Forward-looking statements are typically, but not always, identified by the use of words such as may, will, would, believe, intend, plan, anticipate,
estimate, expect, and other similar terminology indicating future results. Such forward-looking statements are subject to substantial risks and uncertainties that could cause the company s development programs, future
results, performance or achievements to differ materially from those anticipated in the forward-looking statements. Such risks and uncertainties include without limitation risks and uncertainties inherent in the drug development process, including
the company s programs current stage of development, the process of designing and conducting preclinical and clinical trials, risks that the results of prior clinical trials may not be predictive of future clinical trials, clinical
efficacy, or other future results, the regulatory approval
processes, the timing of regulatory filings, the challenges associated with manufacturing drug products,
the company s ability to successfully establish, protect and defend its intellectual property, other matters that could affect the sufficiency of the company s capital resources to fund operations, reliance on third parties for
manufacturing and development efforts, changes in the competitive landscape, and the effects on the company s business of the global events, such as international conflicts or global pandemics. For a further description of the risks and
uncertainties that could cause actual results to differ from those anticipated in these forward-looking statements, as well as risks relating to the business of the company in general, see the company s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (the SEC) on May 7, 2025, and its future periodic reports to be filed with the SEC. Except as required by law, the company undertakes no obligation to
update any forward-looking statements to reflect new information, events or circumstances, or to reflect the occurrence of unanticipated events.
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