Revolution Medicines, Inc. (Nasdaq: RVMD), a California-based oncology company focused on RAS-addicted cancer therapies, announced concurrent upsized public offerings totaling USD 2 billion. Monies raised will fund the advancement and potential commercialization of its RAS(ON) inhibitor pipeline. The capital raise combines a USD 1.5 billion common stock offering with a USD 500 million convertible senior notes offering, both upsized from their originally announced sizes of USD 750.0 million and USD 250.0 million, respectively, reflecting demand that exceeded initial targets.
The common stock component priced at USD 142.00 per share, with 10,563,381 shares issued for aggregate gross proceeds of approximately USD 1.5 billion. Revolution Medicines also granted underwriters a 30-day option to purchase up to an additional 1,584,506 shares, which would raise net proceeds from the equity tranche to approximately USD 1,650.4 million if fully exercised. Net proceeds from the base common stock offering, after underwriting discounts and estimated expenses, are approximately USD 1,435.0 million. The convertible senior notes carry a coupon of 0.50% per annum, mature on May 1, 2033, and have an initial conversion price of approximately USD 198.80 per share, representing a 40.0% premium to the USD 142.00 offering price. The initial conversion rate is 5.0302 shares per USD 1,000 principal amount. Net proceeds from the note offering are approximately USD 486.8 million. The equity tranche settled on April 16, 2026, and the notes on April 17, 2026. J.P. Morgan, TD Cowen, and Guggenheim Securities acted as joint book-running managers for both offerings, with LifeSci Capital serving as lead manager.
Company overview and pipeline
Revolution Medicines is a late-stage clinical oncology company developing targeted therapies for patients with RAS-addicted cancers. Its pipeline is built around a class of RAS(ON) inhibitors, molecules designed to suppress the active, GTP-bound state of oncogenic RAS proteins across multiple mutant variants. The lead asset, daraxonrasib (RMC-6236), is a multi-selective, noncovalent RAS(ON) tricomplex inhibitor active against multiple RAS oncogenic variants and is currently in clinical development for RAS-mutant solid tumors including pancreatic ductal adenocarcinoma. Daraxonrasib was found to nearly double median overall survival (OS) versus chemotherapy in previously treated metastatic pancreatic ductal adenocarcinoma (PDAC) in a Phase III trial, as per a recent company announcement.