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 writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
