AbbVie Nears $20B+ Deal for Revolution Medicines, Capping Historic RAS Rally

January 7, 2026 · by Fintool Agent

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Abbvie-1.81% is in advanced talks to acquire Revolution Medicines+10.48%, the clinical-stage oncology company developing first-in-class RAS inhibitors, in a deal that could value the target at approximately $20 billion or more, according to the Wall Street Journal . The news sent Revolution shares surging 29% to $102.71, breaking above $100 for the first time and capping a stunning 240%+ rally since September .

Trading in RVMD was halted twice due to volatility. AbbVie shares rose 4.2% to $233.43, reflecting investor enthusiasm for the strategic fit .

The Prize: RAS, Oncology's "Undruggable" Target

Revolution Medicines has built what may be the industry's most advanced platform for targeting RAS mutations—genetic alterations present in approximately 30% of all human cancers and historically considered "undruggable" 4. RAS mutations drive some of the most lethal malignancies, including:

• Pancreatic ductal adenocarcinoma (PDAC): >90% of tumors harbor RAS mutations
• Non-small cell lung cancer (NSCLC): ~30% of cases
• Colorectal cancer (CRC): ~50% of cases

The company's proprietary "tri-complex" technology enables direct inhibition of the active, GTP-bound form of RAS—dubbed RAS(ON)—representing a fundamentally different approach than prior RAS(OFF) inhibitors like Amgen's Lumakras (sotorasib) 5.

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Compare Revolution Medicines' RAS(ON) mechanism to Amgen's sotorasib and Mirati's adagrasibShow me the competitive landscape for RAS-targeted cancer therapiesPull all clinical trial data for daraxonrasib from SEC filings

Daraxonrasib: Four Phase 3 Trials, Two Breakthrough Designations

Revolution's lead asset, daraxonrasib (RMC-6236), is a multi-selective RAS(ON) inhibitor targeting G12X, G13X, and Q61X mutations—covering the vast majority of RAS-driven cancers. The drug has received both FDA Breakthrough Therapy and Orphan Drug designations for pancreatic cancer .

Phase 3 Program Overview

*Sources: 2 *

Clinical Data Driving the Premium

Phase 1/1b data for daraxonrasib have been compelling:

In second-line PDAC (300mg dose):

• Objective response rate: 36% in KRAS G12X-mutant patients
• Median progression-free survival: 8.8 months (95% CI: 8.5-NE)
• Disease control rate: 91%

In previously treated NSCLC (RAS G12X, 120-220mg):

• Objective response rate: 38%
• Median duration of response: 15.1 months (95% CI: 11.1-NE)
• Median overall survival: 17.7 months (95% CI: 13.7-NE)

For context, docetaxel—the current standard of care in 2L+ NSCLC—achieves ORRs of just 9-15% and median PFS of 3-4.5 months.

AbbVie's Oncology Buildout Continues

This potential acquisition would extend AbbVie's aggressive push into oncology, following the $9.8 billion ImmunoGen acquisition completed in February 2024 5. That deal brought Elahere, a first-in-class antibody-drug conjugate for platinum-resistant ovarian cancer, and strengthened AbbVie's ADC pipeline.

On the company's Q4 2024 earnings call, CEO Rob Michael outlined the BD strategy:

"We continue to pursue assets that can add depth to our pipeline and really drive growth in the next decade... In oncology, we've added new platforms, including multi-specifics, tri-specifics, T-cell engagers and InSight2 CAR-T approaches." 6

Revolution would add a differentiated precision oncology platform targeting solid tumors—complementing AbbVie's existing hematology strength (Imbruvica, Venclexta) and emerging ADC franchise.

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Show AbbVie's oncology revenue breakdown by product for the last 3 yearsCompare AbbVie's oncology M&A to Bristol Myers and Merck's recent dealsBuild a DCF model for Revolution Medicines at various acquisition premiums

Stock Reaction: RVMD Caps Historic Rally

Revolution shares have delivered extraordinary returns for investors who positioned ahead of today's news:

The surge lifted the broader oncology biotech sector:

• Verastem-1.02% (RAS-focused): +25%
• Tango Therapeutics+6.29%: +20%
• Erasca+16.35%: +27%

Financial Snapshot

Revolution Medicines

AbbVie

*Values retrieved from S&P Global

AbbVie's balance sheet can accommodate a $20B+ acquisition. CFO Scott Reents noted the company is "slightly above 2x net debt to EBITDA" and expects to be at or below that threshold by year-end 13.

What to Watch

1. Deal terms: No price has been disclosed. Based on typical biotech premiums of 50-100%, an offer could land in the $110-130+ per share range

2. Regulatory path: Revolution's FDA breakthrough designations and ongoing Phase 3 trials could support accelerated review timelines

3. Data catalysts: RASolute 302 readout expected in 2026 could occur before or after deal close, representing upside/downside risk

4. Integration: How AbbVie plans to advance the broader RAS(ON) portfolio (elironrasib, zoldonrasib, RMC-5127) alongside daraxonrasib

The deal could close within weeks if negotiations proceed without complications, according to the WSJ .

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Model Revolution Medicines at $120, $140, and $160 per share acquisition pricesShow me AbbVie's historical acquisition multiples vs peer pharmaFind other clinical-stage RAS inhibitors in development

Related:

• Abbvie Company Profile-1.81%
• Revolution Medicines Company Profile+10.48%