Full Press Release Details
Revolution Medicines Reports Second Quarter 2020 Financial Results and Provides Update on Corporate
Interim RMC-4630 Data Support Benefit of Intermittent Dosing and Corroborate
Activity Against Genetically-Defined Tumors
Targeted Combination Strategy Underpins Initiation of New Clinical Trials Evaluating
RMC-4630 with KRASG12C Inhibitor or Anti-PD-1 Antibody
$179.4 Million Follow-On Offering Strengthens Balance Sheet
REDWOOD CITY, CA August 10, 2020
Revolution Medicines, Inc. (Nasdaq: RVMD), a clinical-stage precision oncology company focused on developing targeted therapies to inhibit frontier targets in RAS-addicted cancers, today announced its
financial results for the second quarter and six months ended June 30, 2020, and provided an update on its R&D pipeline and other corporate developments.
Revolution Medicines continues pursuit of its ambitious R&D strategy on behalf of cancer patients with
RAS-addicted tumors. Our cohesive pipeline focuses on multiple key nodes within RAS signaling and interconnected pathways to enable combination treatment approaches that may be needed to maximize patient
benefit in these vexing cancers, said Mark A. Goldsmith, M.D., Ph.D., chief executive officer and chairman of Revolution Medicines.
In the second quarter, we made broad progress across our portfolio of targeted inhibitors. RMC-4630, our
clinical stage inhibitor of SHP2 and a potential backbone in combination treatments, showed further evidence of clinical activity against genetically-defined tumors. Importantly, combination studies of
RMC-4630 with the KRASG12C inhibitor, AMG 510 (sotorasib), and the checkpoint inhibitor, Keytruda
(pembrolizumab), were initiated. We also introduced a potential role for our second clinical candidate, RMC-5552, in combination therapy against cancers carrying dual RAS/mTOR pathway mutations. Further, we
made substantial progress toward nomination of a first development candidate from our innovative family of targeted RAS(ON) inhibitors. Finally, just after the quarter, we completed a successful first
follow-on financing, further strengthening our financial position to enable the continued advancement of our deep R&D pipeline.
Corporate Highlights
Dr. Schmidt s experience spans both finance and life sciences, having previously served for more than two decades as a biotechnology
research analyst. In this capacity, Dr. Schmidt most recently served as managing director and senior biotechnology analyst at Cowen, and previously as vice president and biotechnology research analyst at UBS Securities. Dr. Schmidt is
currently the chief financial officer of Allogene Therapeutics, a clinical-stage biotechnology company pioneering the development of allogenic cell therapies for cancer.
Mr. Svennilson has worked in venture capital and finance for more than 35 years and founded The Column Group in 2007. As former chairman
of Aragon Pharmaceuticals and Seragon Pharmaceuticals, Mr. Svennilson was directly involved in the sale of these companies to Johnson & Johnson and Genentech/Roche, respectively. Previously, as a founder and managing partner of Three
Crowns Capital, he played a key role in the financing of numerous, high profile biotechnology companies including, Tularik, Chemocentryx, Five Prime Therapeutics, and others.
Second Quarter 2020 Financial Highlights
Cash Position: Cash, cash equivalents and marketable securities were $325.4 million as of June 30, 2020, compared to $122.8 million as of
December 31, 2019. The increase was primarily due to proceeds from the IPO in February 2020. Proceeds from the recently completed offering are not included in the June 30, 2020 cash, cash equivalents and marketable securities balance.
Revenue: Total revenue, consisting of revenue from the company s collaboration agreement with Sanofi, was $10.0 million for the quarter ended
June 30, 2020, compared to $12.3 million for the quarter ended June 30, 2019. This decrease was due to lower reimbursed research and development services in the quarter ended June 30, 2020 for
RMC-4630 resulting from lower manufacturing costs, which were partially offset by higher clinical trial costs. During the quarter ended June 30, 2019, the company incurred upfront manufacturing costs
related to the supply of RMC-4630 for our clinical trials.
R&D Expenses: Research and development
expenses were $32.9 million for the quarter ended June 30, 2020, compared to $20.1 million for the quarter ended June 30, 2019. This increase was primarily due to an increase in research expenses associated with the
company s pre-clinical research portfolio, and an increase in personnel-related expenses related to additional headcount, partially offset by lower costs related to
G&A Expenses: General and administrative expenses were $5.1 million for the quarter
ended June 30, 2020, compared to $2.7 million for the quarter ended June 30, 2019. This increase was primarily due to an increase in expenses associated with operating as a public company.
Net Loss: Net loss was $27.2 million for the quarter ended June 30, 2020, compared to net loss of $10.1 million for the quarter
ended June 30, 2019.
About Revolution Medicines, Inc.
Revolution Medicines is a clinical-stage precision oncology company focused on developing novel targeted therapies to inhibit high-value frontier targets in RAS-addicted cancers. The company possesses sophisticated structure-based drug discovery capabilities built upon deep chemical biology and cancer pharmacology know-how and
innovative, proprietary technologies that enable the creation of small molecules tailored to unconventional binding sites.
pipeline includes RMC-4630, a clinical-stage investigational drug that is designed to selectively inhibit the activity of SHP2, an upstream node in RAS signaling. Preclinical programs include inhibitors of
multiple mutant RAS proteins and SOS1. RMC-5552, currently in IND-enabling development, is designed for use against tumors featuring mTORC1 activation, including certain
RAS-addicted cancers.
Keytruda is a registered trademark of Merck Sharp & Dohme Corp., a subsidiary of Merck & Co. Tagrisso is a registered trademark
of the AstraZeneca group of companies.
Forward Looking Statements
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 Revolution Medicines development plans and timelines and its ability to advance its
R&D pipeline, the ability of Revolution Medicines therapies to inhibit frontier targets in RAS-addicted cancers, the potential role of RMC-5552 in a
combination therapy, Revolution Medicines plan to nominate a development candidate from its family of targeted RAS(ON) inhibitors in 2020, the benefits of intermittent dosing of RMC-4630 and the clinical
activity of this candidates, Revolution Medicines plans to initiate a clinical trial evaluating RMC-4630 in combination with the EGFR inhibitor osimertinib, Revolution Medicines plan to be IND-ready with RMC-5552 in 2020. 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 our 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 Revolution Medicines programs early stage of development, the process of designing and conducting preclinical and clinical trials, the regulatory
approval processes, the timing of regulatory filings, the challenges associated with manufacturing drug products, Revolution Medicines ability to successfully establish, protect and defend its intellectual property, other matters that could
affect the sufficiency of Revolution Medicines capital resources to fund operations, reliance on third parties for manufacturing and development efforts, changes in the competitive landscape and the effects on our business of the worldwide COVID-19 pandemic. 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 Revolution Medicines in general, see Revolution Medicines Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 10, 2020, and its future periodic
reports to be filed with the Securities and Exchange Commission. Except as required by law, Revolution Medicines undertakes no obligation to update any forward-looking statements to reflect new information, events or circumstances, or to reflect the
occurrence of unanticipated events.
Vida Strategic Partners
Vida Strategic Partners
REVOLUTION MEDICINES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Revenue: | ||||||||||||||||
| Collaboration revenue, related party | $ | 10,025 | $ | 12,281 | $ | 21,571 | $ | 25,447 | ||||||||
| Total revenue | 10,025 | 12,281 | 21,571 | 25,447 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 32,918 | 20,117 | 60,375 | 41,303 | ||||||||||||
| General and administrative | 5,091 | 2,725 | 10,262 | 5,141 | ||||||||||||
| Total operating expenses | 38,009 | 22,842 | 70,637 | 46,444 | ||||||||||||
| Loss from operations | (27,984 | ) | (10,561 | ) | (49,066 | ) | (20,997 | ) | ||||||||
| Other income, net: | ||||||||||||||||
| Interest income | 730 | 470 | 1,639 | 805 | ||||||||||||
| Interest and other expense | (19 | ) | (28 | ) | (40 | ) | (58 | ) | ||||||||
| Total other income, net | 711 | 442 | 1,599 | 747 | ||||||||||||
| Loss before income taxes | (27,273 | ) | (10,119 | ) | (47,467 | ) | (20,250 | ) | ||||||||
| Benefit from income taxes | 58 | 733 | ||||||||||||||
| Net loss | $ | (27,215 | ) | $ | (10,119 | ) | $ | (46,734 | ) | $ | (20,250 | ) | ||||
| Redeemable convertible preferred stock dividends - undeclared and cumulative | (3,063 | ) | (2,219 | ) | (5,740 | ) | ||||||||||
| Net loss attributable to common stockholders | $ | (27,215 | ) | $ | (13,182 | ) | $ | (48,953 | ) | $ | (25,990 | ) | ||||
| Net loss per share attributable to common stockholders - basic and diluted | $ | (0.46 | ) | $ | (4.85 | ) | $ | (1.11 | ) | $ | (9.69 | ) | ||||
| Weighted-average common shares used to compute net loss per share, basic and diluted | 58,752,494 | 2,718,573 | 44,025,372 | 2,680,863 |
REVOLUTION MEDICINES, INC.
SELECTED CONDENSED CONSOLIDATED
thousands, unaudited)
| June 30, | December 31, | |||||||
| 2020 | 2019 | |||||||
| Cash, cash equivalents and marketable securities | $ | 325,445 | $ | 122,758 | ||||
| Working capital (1) | 296,644 | 90,929 | ||||||
| Total assets | 453,957 | 220,529 | ||||||
| Deferred revenue | 26,191 | 31,851 | ||||||
| Total liabilities | 93,459 | 67,994 | ||||||
| Redeemable convertible preferred stock | 305,109 | |||||||
| Total stockholders equity (deficit) | 360,498 | (152,574 | ) |