New York, Jan 12, 2026, 11:17 EST — Regular session
- Revolution Medicines shares dipped roughly 2% in early trading, following a strong rally last week
- Truist sticks with its Buy rating but holds the price target at $99, far under the current stock price
- Investors will be tuning in to the company’s presentation at the J.P. Morgan Healthcare Conference later Monday
Shares of Revolution Medicines (RVMD) slipped around 1.8% to $116.51 in early Monday trading, pulling back from a 52-week peak amid fresh analyst notes following a rollercoaster week of takeover rumors. The stock fluctuated between $113.47 and $119.58 during the session, pegging the company’s market cap at about $23 billion.
The retreat follows a Wall Street Journal story revealing Merck’s ongoing talks to acquire Revolution in a deal pegged between $28 billion and $32 billion. The report suggests an announcement might arrive later this month but notes discussions remain tentative, with other bidders potentially entering the fray. (Wall Street Journal)
Why it matters now: Revolution is set to present at the J.P. Morgan Healthcare Conference, a key week when biotech deal talk usually heats up and executives face tough questions on timelines. CEO Mark A. Goldsmith is slated to speak at 10:30 a.m. PT (1:30 p.m. ET) Monday, the company confirmed.
Truist Securities stuck to its Buy rating on Monday but held firm on a $99 price target—still below the stock’s current level after a recent rally. The firm noted that any near-term takeover bid would probably have to come with a “difficult to refuse” price. It also highlighted that potential acquirers would likely want to see late-stage data first to reduce risk, referencing the company’s Phase 3 RASolute-302 study, with topline results expected “potentially due in the first half of 2026.” (Investing)
Revolution, headquartered in Redwood City, California, is working on drugs targeting mutant RAS proteins, a key driver in many cancers. This month, the FDA granted Breakthrough Therapy Designation to its lung cancer drug zoldonrasib, aimed at patients with KRAS G12D-mutated non-small cell lung cancer who have already undergone treatment. According to Goldsmith, the FDA’s move “underscores the significant unmet need” in this area. (Nasdaq)
The stock’s rapid surge has reshaped the numbers for investors. RVMD now trades above several published targets, which heightens sensitivity to any updates on trial timing or clinical risk.
Data remains crucial. Phase 3 trials, the final hurdle, aim to prove a drug’s effectiveness and safety to regulators. Their results can swing the narrative dramatically in either direction.
There’s also the harsh downside: takeover talks might fizzle out or get stuck over price, sending the stock back down as quickly as it rose. Antitrust scrutiny looms as another wildcard with big pharma in the mix—even before any drug data comes into play.
On Monday, traders will focus on any comments from Goldsmith about the speed of key trials and whether Revolution reveals plans to finance a large Phase 3 effort. Traders will also keep an eye out for fresh updates on Merck’s reported strategy and the schedule for upcoming major clinical data releases.
