Merck & Co. announced on January 8 2026 that it is in advanced talks to acquire Revolution Medicines Inc. for a transaction valued between $28 billion and $32 billion. The deal would make Merck the largest buyer in the oncology biotech space in recent years and would give the pharmaceutical giant access to Revolution’s RAS(ON) platform, whose lead asset, daraxonrasib, is in late‑stage trials for pancreatic and lung cancers.
Merck’s interest is driven by a strategic need to offset the 2028 expiration of its blockbuster immunotherapy Keytruda. By adding daraxonrasib and other RAS‑mutated cancer candidates, Merck would broaden its oncology portfolio and accelerate commercialization of a platform that targets a historically “undruggable” class of proteins. The acquisition would also reinforce Merck’s recent acquisition spree, which included Cidara Therapeutics and Verona Pharma, and signals a continued focus on precision, targeted therapies.
Revolution Medicines is a clinical‑stage company with no FDA‑approved products. In Q3 2025 it reported a net loss of $305.2 million, up from $156.3 million in Q3 2024, and has no revenue growth over the past three years. Its market capitalization was approximately $19.86 billion on January 7 2026, so the $28‑$32 billion range represents a premium of roughly 40% to 50% over current market value, reflecting the strategic value Merck places on the RAS(ON) platform.
Investors reacted strongly to the announcement, reflecting confidence in Merck’s oncology strategy and the potential upside of acquiring a high‑profile pipeline. The news also highlighted the competitive nature of the deal, as other pharmaceutical companies have reportedly expressed interest and AbbVie had previously denied rumors of a bid, adding to the market’s perception of a possible bidding war.
The transaction, if completed, would position Merck to capture a larger share of the growing RAS‑mutated cancer market and provide Revolution shareholders with a substantial liquidity event. The deal’s finalization is expected to take several weeks, and Merck’s progress will be closely watched as it seeks to strengthen its pipeline ahead of Keytruda’s patent cliff.
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