Merck In Talks to Buy Cancer Drug Company Revolution Medicines

Merck, a pharmaceutical company, is reportedly in talks to purchase Revolution Medicines, according to the Wall Street Journal.

The Wall Street Journal reports that the deal is valued at around $30 billion, in the $28 billion to $32 billion range, and could happen as soon as later this month, but another suitor could emerge. 

More About the Deal and Suitors

In addition to Merck, AbbVie was also in "advanced" talks to acquire Revolution. However, according to Stocktwits, an emailed statement from AbbVie said, “AbbVie has not been in talks to acquire RevMed.”

With these talks emerging, RVMD stock rose 11%, while MRK fell 0.4%. 

The Wall Street Journal reported that Revolution had a market value of $16 billion, and after reports of the potential sale, it rose to $20 billion. 

What Is Revolution?

Revolution Medicines is a company specializing in cancer medications. It's developing therapies for patients that have "RAS-addicted cancers," which Stocktwist describes as "RAS-addicted cancers are prevalent malignancies, including pancreatic, colorectal, and lung cancers, driven by mutations in RAS genes."

Thus, the drugs could block the driver and halt cancers in those areas. 

Right now, the company has multiple drugs in clinical development, including daraxonrasib, elironrasib, zoldonrasib, and RMC-5127.

The Journal reports that Mizuho Securities analysts estimate that, if the pancreatic-cancer drug proves safe, it could generate more than $10 billion in sales in 2035.

Last year, cancer treatment drugs generated $240 billion in worldwide sales, according to market-research firm Evaluate. The firm also reports that sales are growing 8% annually.

More On Merck

Merck has a market value of around $275 billion. One of its products, Keytruda, an immunotherapy, generated $29.5 billion in sales in 2024 and is among the world's best-selling drugs. However, the drug will lose protection under its main patent in 2028, which will significantly impact the company's overall revenue. 

With that coming, Merck is working on additional acquisitions. 

Last year, Merck announced it would buy Cidara Therapeutics, an antiviral maker, for $9.2 billion, along with Verona Pharma and its lung drug for $10 billion.