Merck & Co. is in advanced talks to acquire Revolution Medicines for a transaction valued between $28 billion and $32 billion, a deal that would be the largest Merck has ever pursued. The valuation represents a premium over Revolution’s market capitalization, which hovered around $19 billion in early January.
The acquisition is strategically designed to broaden Merck’s oncology portfolio beyond its flagship immunotherapy, Keytruda, and to provide a buffer against the 2028 patent cliff that will erode Keytruda’s revenue. By adding Revolution’s early‑stage RAS(ON) inhibitor pipeline, including the late‑stage pancreatic‑cancer candidate daraxonrasib, Merck would gain access to a new class of targeted therapies that could generate high‑margin revenue once approved.
Revolution’s pipeline is anchored by daraxonrasib, a RAS(ON) inhibitor in phase III trials for pancreatic and lung cancers, and the company has secured a $2 billion flexible funding agreement with Royalty Pharma to support its development and commercialization efforts. The deal would therefore bring both a promising drug candidate and a robust financial partnership into Merck’s fold.
Merck has recently completed acquisitions of Cidara Therapeutics for $9.2 billion and Verona Pharma for $10 billion, underscoring its aggressive M&A strategy to strengthen its oncology and immunology businesses. The proposed Revolution deal would surpass those transactions in size and would further cement Merck’s position as a leading player in the cancer‑drug market.
The talks are described as advanced, but the transaction has not yet closed and is expected to take several weeks to finalize. Other pharmaceutical companies have reportedly shown interest, suggesting that Merck may face competition for the deal, which could influence the final terms and valuation.
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