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Revolution Medicines Inc. (NASDAQ: RVMD) has a lot more going for it than pancreatic cancer, according to William Blair. The firm initiated coverage of the biotechnology company with an Outperform rating and a $226 price forecast.
Analyst Alethia Young said the company's years of investment in RAS biology are beginning to pay off. Its pipeline focuses on RAS(ON) inhibitors designed to block cancer-driving RAS protein mutations.
In August, the U.S. Food and Drug Administration approved Revolution Medicines' Rasonque (daraxonrasib) for metastatic pancreatic ductal adenocarcinoma.
The approval covers patients who received at least one prior systemic therapy or cannot undergo multiagent treatment.
Rasonque became the first approved targeted cancer therapy in a new class of RAS(ON) inhibitors.
On Friday, the European Medicines Agency's Committee for Medicinal Products for Human Use recommended approval of Rasonque for patients with metastatic pancreatic cancer who received at least one prior systemic therapy.
Young expects Revolution Medicines to maintain a leading position in pancreatic cancer over the near and long term.
The drug's second-line approval arrived earlier than expected. Its commercial launch is underway, with physicians reporting rapid adoption.
Meanwhile, four pivotal studies are evaluating daraxonrasib and zoldonrasib in earlier treatment settings, including adjuvant therapy.
The company is also testing combinations with PRMT5 inhibitors and other experimental treatments to improve the durability of patient responses.
Young forecasts $9.8 billion in revenue by 2032, below Bloomberg's consensus estimate of $12.6 billion.
Her projection includes only second- and third-line non-small cell lung cancer treatment and excludes elironrasib.
However, Young remains bullish on the company's ability to expand its RAS inhibitors into other cancers. She expects that opportunity to become clearer over the next 12 months.
The RASolve 301 trial, which compares daraxonrasib with docetaxel in previously treated lung cancer patients, is expected to deliver results in 2027.
Early data for zoldonrasib and elironrasib in first-line lung cancer treatment are promising, although patient follow-up remains limited.
Colorectal cancer remains the least validated opportunity. Revolution Medicines expects to present additional data and outline its development strategy in the fourth quarter of 2026.
RVMD Price Action: Revolution Medicines shares were down 5.88% at $178.14 at the time of publication on Friday, according to market data. The stock remains up 124% year to date.
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