Revolution Medicines (RVMD) Q2 2024 earnings summary

Executive summary

• Advanced RMC-6236, a RAS(ON) multi-selective inhibitor, into pivotal monotherapy studies for metastatic pancreatic cancer and non-small cell lung cancer (NSCLC), supported by strong preliminary efficacy and safety data.

• Expanded clinical pipeline with ongoing and planned studies for RMC-6291 (G12C selective), RMC-9805 (G12D selective), and additional RAS(ON) inhibitors in development.

• Completed the acquisition of EQRx in November 2023, adding approximately $1.1 billion in net cash and marketable securities, and issued 54.8 million shares as part of the transaction.

• Strengthened leadership with the appointment of Frank Clyburn to the board and key hires in medical, corporate, and drug safety roles.

Financial highlights

• Ended Q2 2024 with $1.59 billion in cash, cash equivalents, and marketable securities, down from $1.7 billion at Q1 end.

• No revenue recognized in Q2 2024, down from $3.8 million in Q2 2023, due to the termination of the Sanofi agreement.

• R&D expenses rose to $134.9 million in Q2 2024 from $98.0 million in Q2 2023, driven by clinical trial and personnel costs.

• G&A expenses increased to $21.7 million from $14.6 million year-over-year, reflecting higher headcount and commercial preparation.

• Net loss for Q2 2024 was $133.2 million, compared to $98.3 million in Q2 2023; net loss per share was $(0.81) versus $(0.92) in the prior year.

Outlook and guidance

• Plans to initiate the first global registrational phase III study of RMC-6236 in second-line metastatic pancreatic cancer in 2024 and a Phase 3 trial in NSCLC in Q4 2024.

• Full-year 2024 GAAP net loss expected between $560 million and $600 million, including $70–80 million in non-cash stock-based compensation.

• Current cash position expected to fund operations into 2027.

• Initial data from combination studies (RMC-6236 with pembrolizumab and RMC-6291) expected in Q4 2024; RMC-6291 with pembrolizumab data expected in H1 2025.