Taking a Look at $RVMD:
An updated look at Revolution Medicines.
An updated look at Revolution Medicines.
1/ Management:
I don't know Mark Goldsmith very well. I have only been in Revolution Medicine about a year. That isn't a lot time to really know a management team. So far, I think he has done and excellent job.
I don't know Mark Goldsmith very well. I have only been in Revolution Medicine about a year. That isn't a lot time to really know a management team. So far, I think he has done and excellent job.
2/ All their programs are still very early so it is hard to see how well they will navigate the regulatory and commercial parts of the business at this stage.
3/ Science:
This company is fully focused on the intracellular pathways that drive cell growth like the MAPK and mTOR pathways. They have their pipeline broken down into 2 parts. The first is all their RAS based inhibitors. The second half is RAS companion inhibitors.
This company is fully focused on the intracellular pathways that drive cell growth like the MAPK and mTOR pathways. They have their pipeline broken down into 2 parts. The first is all their RAS based inhibitors. The second half is RAS companion inhibitors.
4/ There are a lot of feed back mechanisms for RAS that allow it to rebound when inhibited. Finding companion inhibitors to help shut that down will be critical for future targeted therapies. Around half of all cancers have some kind of RAS mutation which makes it a huge prize.
5/ They have multiple RAS and KRAS inhibitors with their RAS multi being one of the most interesting. If it works, it will address multiple mutations of KRAS with on drug. They also have multiple KRAS specific inhibitors in development for KRAS G12C, G12D and G13C.
6/ Their companion inhibitors include a SHP2, SOS1 and 4EBP1 inhibitor. Their SHP2 is in phase 2 and partnered 50/50 with Sanofi. I love their approach to taking on this key oncology driver and multi faceted approach.
7/ Potential:
The potential for KRAS variants alone could be worth $1.5 billion in KRAS G12C, another $1.5 billion in KRAS G12D and then more for the smaller variants across KRAS 12, 13 and 61 mutations.
The potential for KRAS variants alone could be worth $1.5 billion in KRAS G12C, another $1.5 billion in KRAS G12D and then more for the smaller variants across KRAS 12, 13 and 61 mutations.
8/ Their companion inhibitors can also contribute to revenues based on how well they combo with other oncology therapies. Right now they have SHP2 in combo with KRAS and PD1 therapies. I think they could add at least $1 billion or more per target if they do work out.
9/ This company could have a ton of potential if their RAS on approach proves to be superior to the first generation RAS off inhibitors.
10/ Valuation:
This company seems super cheap at only $1.49 billion with over $577 million in cash. They burned just under $200 million in 2021 which gives them at least 2 years of cash.
This company seems super cheap at only $1.49 billion with over $577 million in cash. They burned just under $200 million in 2021 which gives them at least 2 years of cash.
11/ You are paying less then $1 billion for a company that could turn into many fold that level of revenues in 10 years. Its still very early stage, but they do have some success so far with SHP2.
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