Revolution Medicines Enters the Market With a Bang
Revolution Medicines entered the market with a bang on Thursday. Although the company only priced shares are $17 apiece, the stock actually entered the market closer to $28.
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Revolution Medicines Inc. (NASDAQ: RVMD) entered the market with a bang on Thursday. Although the company only priced shares are $17 apiece, the stock actually entered the market closer to $28. The company is selling 14.0 million shares, with an overallotment option for an additional 2.1 million shares. At the $17 price, the entire offering is valued up to $273.7 million.
The underwriters for the offering are JPMorgan, Cowen, SVB Leerink and Guggenheim Securities.
This clinical-stage oncology company is focused on developing novel targeted therapies to inhibit elusive high-value frontier cancer targets within notorious growth and survival pathways, with particular emphasis on RAS and mTOR signaling pathways.
Revolution Medicines possesses sophisticated structure-based drug discovery capabilities built upon deep chemical biology and cancer pharmacology know-how and innovative, proprietary technologies that enable the creation of small molecules tailored to unconventional binding sites.
The company’s pipeline includes RMC-4630, a clinical-stage drug candidate that is designed to selectively inhibit the activity of SHP2. Additionally, the company is developing a broad portfolio of inhibitors of other key frontier oncology targets within the notorious RAS pathway, as well as the related mTOR signaling cascade.
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In the SEC filing, the company detailed that it will use the net proceeds from the offering to further develop its pipeline, with the remainder going toward working capital and general corporate purposes.
Shares of Revolution Medicines were last seen up over 72% at $29.22, in a range of $28.21 to $31.40 on the day thus far. Roughly 3.2 million shares have moved as of 11:30 a.m. Eastern.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
