Revolution Medicines, Inc. (NASDAQ:RVMD) is a clinical-stage precision oncology company developing novel targeted therapies for RAS-addicted cancers. The company has made significant strides in advancing its pioneering RAS(ON) inhibitor pipeline, positioning it for a transformative year ahead.
Financial Overview
Revolution Medicines reported a net loss of $116.0 million for the first quarter of 2023, compared to a net loss of $68.1 million in the same period of the prior year. The company's annual net loss for 2022 was $436.4 million. Revenue for the first quarter of 2023 was $0, compared to $7.0 million in the first quarter of 2022. The company's annual revenue for 2022 was $11.6 million.The company's operating cash flow for the first quarter of 2023 was -$160.6 million, compared to -$62.4 million in the same period of the prior year. The company's annual operating cash flow for 2022 was -$350.6 million. Free cash flow for the first quarter of 2023 was -$251.0 million, compared to $2.2 million in the same period of the prior year. The company's annual free cash flow for 2022 was -$358.3 million.
As of March 31, 2023, Revolution Medicines had $1.7 billion in cash, cash equivalents, and marketable securities, providing the company with a strong financial position to advance its pipeline.
Business Overview
Revolution Medicines is a pioneer in the development of RAS(ON) inhibitors, a novel approach to targeting the active, GTP-bound form of RAS, which plays a critical role in driving many cancers. The company's lead RAS(ON) inhibitor, RMC-6236, is being evaluated in a first-in-human study, with plans to initiate pivotal trials in second-line pancreatic ductal adenocarcinoma (PDAC) and non-small cell lung cancer (NSCLC) in the second half of 2024.The company's second development priority is focused on expanding the reach of RMC-6236 beyond KRAS G12X mutations into different RAS genotypes and tumor types. Recent data presented at the American Association for Cancer Research (AACR) Annual Meeting 2023 demonstrated the compound's activity across a wide range of oncogenic RAS variants, including NRAS, KRAS G13, and KRAS Q61 mutations.
Revolution Medicines is also advancing its first two RAS(ON) mutant-selective inhibitors, RMC-6291 (KRAS G12C) and RMC-9805 (KRAS G12D), through clinical development. The company is evaluating these compounds in combination with other therapies, including RMC-6236, to explore opportunities in earlier lines of treatment.
Operational Highlights
In the first quarter of 2023, Revolution Medicines made significant progress in advancing its RAS(ON) inhibitor pipeline:1. RMC-6236:
The company plans to initiate global, randomized, controlled registrational trials evaluating RMC-6236 as second-line treatment for patients with advanced PDAC and NSCLC in the second half of 2024. The company expects to disclose updated clinical data from the ongoing RMC-6236-001 study in these indications near the launch of these trials.2. RMC-6291 (KRAS G12C):
The first-in-human study of RMC-6291 has yielded encouraging initial clinical data in second-line monotherapy treatment of patients with KRAS G12C NSCLC, including those previously treated with an approved KRAS G12C (OFF) inhibitor, and in patients with KRAS G12C colorectal cancer who had not been previously treated with a RAS(OFF) inhibitor.3. RMC-9805 (KRAS G12D):
Oral bioavailability of RMC-9805 in patients has been confirmed, and the company has cleared several dose levels with good tolerability and no dose-limiting toxicities reported thus far. The company expects to share initial safety, tolerability, and antitumor activity data for RMC-9805 in the second half of 2024.4. Combination Studies:
Revolution Medicines is evaluating several key combination regimens, including RMC-6236 plus RMC-6291, RMC-6236 plus pembrolizumab, and RMC-6236 plus standard-of-care chemotherapy in first-line PDAC and colorectal cancer. The company anticipates reporting initial clinical data for these combinations in the second half of 2024.Guidance and Outlook
For the full year 2023, Revolution Medicines expects a GAAP net loss of between $480 million and $520 million, which includes estimated non-cash stock-based compensation expense of between $70 million and $80 million.The company remains focused on delivering key data and actions to advance RMC-6236 into its first registrational trials while qualifying the range of potential opportunities extending the reach of its RAS(ON) inhibitors into earlier lines of treatment for patients living with RAS-addicted cancers.