New York, Jan 26, 2026, 05:06 EST — Premarket
- Revolution Medicines dropped roughly 22% in early trading following reports that Merck has ended talks to acquire the biotech.
- The move reverses part of the takeover premium that had pushed the stock higher earlier this month.
- Investors are eyeing upcoming clinical data and watching for new signs of deal interest from Merck.
Revolution Medicines, Inc. shares dropped roughly 22%, slipping to about $92 in premarket Monday, after news surfaced over the weekend that Merck ended acquisition discussions.
The decline is significant because RVMD had turned into a takeover play. Investors were betting more on a buyout than the drug’s trial schedule, and that can shift quickly once word spreads that a major buyer has walked away.
The timing is shaky for biotech, with M&A buzz sparking sharp volume spikes and wild swings, particularly among oncology stocks holding late-stage assets.
Merck has stopped talks to acquire Revolution Medicines after failing to settle on a price, the Wall Street Journal reported, citing sources familiar with the situation. Merck didn’t respond to requests for comment outside regular hours, and Revolution declined to comment, Reuters said. Earlier, the Financial Times reported negotiations in the $28 billion to $32 billion range. The deal would have given Merck access to Revolution’s late-stage experimental cancer drug daraxonrasib, which holds a “fast-track review voucher” to accelerate future U.S. approval. Revolution’s market cap stands near $22.7 billion, according to LSEG data. Reuters
Revolution ended Friday at $117.63, falling roughly 1% on the day following several weeks of volatile moves linked to buyout rumors.
The Journal reported that talks might resume or a new bidder could enter the scene, keeping the possibility of a deal alive despite the stock’s adjustment. Merck CEO Robert Davis told investors earlier this month that the company has mainly targeted deals up to $15 billion, emphasizing a “disciplined” approach on larger acquisitions, the paper added. The Wall Street Journal
Stifel’s Laura Prendergast maintained her buy rating, describing the breakup as an “M&A clearing event.” She added it “will be viewed as a buying opportunity for many sector specialists,” according to TipRanks. TipRanks
The risk remains clear: without a new bidder, that takeover premium could vanish, leaving the stock reliant on pipeline updates and trial results. Any hiccup in safety, efficacy, or delays in timing would probably sting more without M&A support.
Investors are now waiting for more updates on strategic interest in Revolution, alongside Merck’s next public commentary on dealmaking when it reports earnings on Feb. 3.
