On Monday, H.C. Wainwright adjusted its outlook on shares of Revolution Medicines, raising the price target to $62 from $56, while maintaining a Buy rating on the company's stock. This update follows the presentation of promising preliminary Phase 1/1b trial results for Revolution Medicines' RAS(ON) G12D-selective inhibitor, RMC-9805, at the recent EORTC-NCI-AACR meeting.
The trial, named RMC-9805-001, involves patients with previously treated pancreatic ductal adenocarcinoma (PDAC). The data, as of September 2, 2024, revealed an objective response rate (ORR) of 30% and a disease control rate of 80% among patients who were administered either a 1200mg once daily or 600mg twice daily dose of RMC-9805.
These figures are notably higher than the 3-17% ORR typically seen with various chemotherapy regimens in second-line or later PDAC treatments.
The analyst from H.C. Wainwright highlighted the monotherapy results of RMC-9805 in patients with KRASG12D+ PDAC and the potential for combining RMC-9805 with another drug, RMC-6236. These findings have led to the inclusion of risk-adjusted revenues for RMC-9805 in the second-line KRASG12D+ PDAC setting within their financial model.
While the firm has not yet accounted for risk-adjusted revenues for RMC-6236 or RMC-9805 in the first-line PDAC setting, these are seen as possible contributors to future forecast improvements. The revision of the price target to $62 reflects the incorporation of these new data points and the continued endorsement of a Buy rating for Revolution Medicines' stock.
In other recent news, Revolution Medicines has made significant strides in the development of its cancer treatment candidates, RMC-6236 and RMC-9805. The company's recent clinical updates have led to Oppenheimer increasing the stock price target for Revolution to $60 while maintaining an Outperform rating on the stock.
Needham also maintained a positive stance with a Buy rating and a price target of $61.00, following the presentation of updated findings on the cancer treatments.
Revolution has reported promising preliminary results from its first-in-human study of RMC-9805, showing a 30% objective response rate and an 80% disease control rate among patients with pancreatic ductal adenocarcinoma (PDAC). The company also reported progress with its Phase 1 study of RMC-6236, showing encouraging progression-free survival rates.
TD Cowen reiterated its Buy rating on Revolution following these results, expressing optimism about the potential for RMC-6236 and RMC-9805 to impact the treatment landscape for PDAC. The company anticipates a net loss between $560 million and $600 million for the full year 2024, mainly due to the acceleration of its Phase 2 trial for PDAC.
These recent developments underline Revolution Medicine's ongoing pursuit of effective treatments for challenging cancer types.
InvestingPro Insights
Revolution Medicines (RVMD) has been experiencing significant momentum in the market, aligning with the positive outlook from H.C. Wainwright. According to InvestingPro data, the company has seen a strong return of 148.6% over the last year, with a 37.04% increase in the past six months alone. This upward trend is further supported by the stock trading near its 52-week high, with the current price at 99.8% of that peak.
InvestingPro Tips highlight that RVMD holds more cash than debt on its balance sheet, which could provide financial flexibility for continued research and development efforts. This is particularly relevant given the promising Phase 1/1b trial results for RMC-9805 mentioned in the article.
However, it's important to note that RVMD is not currently profitable, with a negative P/E ratio of -18.51 for the last twelve months as of Q2 2024. This is consistent with the early-stage nature of many biotech companies focused on drug development.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for RVMD, providing a deeper understanding of the company's financial health and market position.
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