Revolution Medicines Inc. (RVMD) announced on Tuesday that it has entered into a definitive agreement to acquire EQRx Inc. (EQRX) in a cash deal projected to increase its net cash by over $1 billion. Revolution Medicines specializes in developing therapies for RAS-addicted cancers caused by mutations in RAS genes. The company intends to utilize the proceeds from this acquisition to support the late-stage development of RAS inhibitor drug candidates.
Strategic Acquisition to Boost RAS-Focused Drug Candidate Pipeline
Under the terms of the board-approved deal, EQRx shareholders will receive shares based on an exchange-ratio formula, equivalent to approximately 7.7 million Revolution shares. Additionally, they will be given shares worth $870 million, which will be discounted based on Revolution's share price at the time of the shareholder vote.
"This significant acquisition of additional capital exemplifies our growing confidence in our RAS-focused drug candidate pipeline and substantially enhances our ability to advance our high-performing oncology assets," stated Dr. Mark A. Goldsmith, CEO of Revolution Medicines. He highlighted the priority clinical-stage RAS(ON) Inhibitors, specifically mentioning RMC-6236, RMC-6291, and RMC-9805, as potential sources of significant long-term value for the company's shareholders.
The transaction is anticipated to be completed in November, pending shareholder approval.