The global pharmaceutical market is abuzz with reports that Merck & Co. (MSD) is in active negotiations to acquire Revolution Medicines. If finalized, this would represent one of the largest biopharma M&A transactions since 2023, with a projected valuation between $28 billion and $32 billion.
Driven by the “Patent Cliff” Merck’s aggressive pursuit of new acquisition targets is viewed as a strategic response to the upcoming patent expiration of its blockbuster cancer therapy, Keytruda, later this decade. Furthermore, other flagship products like Lynparza and the Gardasil vaccine are set to lose exclusivity in the coming years, necessitating a more diversified portfolio.
Strategic Asset: Daraxonrasib The primary focus of this potential acquisition is Daraxonrasib (RMC-6236), an experimental small-molecule drug currently in late-stage clinical trials. This therapy targets RAS gene mutations, which drive several aggressive cancers, including:
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Pancreatic cancer (already granted Breakthrough Therapy Designation by the FDA).
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Non-small cell lung cancer.
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Colorectal cancer.
While negotiations are reportedly underway, analysts emphasize that a final agreement has not yet been reached. Other major pharmaceutical players are also monitoring Revolution Medicines, raising the possibility of competing bids emerging in the weeks ahead.