Merck & Co., Inc. (NYSE:MRK) has reportedly ended discussions to acquire cancer drug developer Revolution Medicines, Inc. (NASDAQ:RVMD) after the two sides disagreed on valuation.
Earlier in January, the Financial Times reported that Merck is reportedly in talks to acquire Revolution Medicines in a deal potentially valued at between $28 billion and $32 billion.
The talks had valued Revolution Medicines at roughly $30 billion. Citing people familiar with the matter, the Wall Street Journal report on Sunday signaled Merck’s continued discipline on deal size despite interest in high-growth oncology assets.
Merck’s Acquisition Strategy
Merck CEO Robert Davis addressed the company’s acquisition strategy earlier this month at the J.P. Morgan Healthcare Conference. He said Merck has primarily been targeting deals valued at $15 billion or less, while remaining open to larger transactions under the right conditions.
Earlier in January, AbbVie Inc. (NYSE:ABBV) was also reportedly in advanced talks to buy the cancer-drug biotech, though further details were not known.
Soon after the report, the company told Reuters, “is not in discussions with Revolution Medicines.”
Market Reaction and Valuation Shift
Before reports of a potential acquisition surfaced earlier in 2026, Revolution Medicines carried a market value of about $16 billion. Its shares surged following deal speculation, briefly pushing the company’s valuation above $22 billion.
Revolution Medicines is developing targeted cancer therapies focused on the RAS molecular driver, a pathway long considered difficult to drug.
Citing Mizuho Securities, the WSJ report added that Revolution Medicines’ experimental pancreatic cancer treatment alone could generate as much as $10 billion in annual sales by 2035, underscoring why the biotech attracted takeover interest.
Future Deal Prospects
Despite the setback, the door may not be fully closed. People familiar with the discussions said talks could potentially restart, or another bidder could emerge.
Investor attention is also building ahead of upcoming clinical updates, with Revolution Medicines expected to release closely watched trial data for its pancreatic and colorectal cancer drug candidates in the first half of this year.
In October 2025, Revolution Medicines’ daraxonrasib (RMC-6236) for pancreatic cancer was included in the FDA’s Commissioner’s National Priority Voucher program.
Daraxonrasib is being studied in two global Phase 3 clinical trials, RASolute 302 in patients with previously treated metastatic pancreatic ductal adenocarcinoma and RASolve 301 in patients with previously treated metastatic non-small cell lung cancer.
Price Action: Revolution Medicines shares were down 22.74% at $90.88 during premarket trading on Monday, according to Benzinga Pro data. Merck shares were up 0.15% at $108.34.
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