Revolution Medicines Inc (RVMD) Reports Q3 2023 Financial Results and Corporate Progress
Revolution Medicines Inc (NASDAQ:RVMD) reported a net loss of $108.4 million for Q3 2023, compared to a net loss of $73.3 million for Q3 2022.
The company's cash, cash equivalents, and marketable securities were $813.2 million as of September 30, 2023, compared to $644.9 million as of December 31, 2022.
Research and development expenses increased to $107.7 million for Q3 2023, up from $69.5 million for Q3 2022.
The company expects to close the acquisition of EQRx, Inc. later this month, which is estimated to add approximately $1.1 billion in net cash proceeds.
Revolution Medicines Inc (NASDAQ:RVMD), a clinical-stage oncology company, released its financial results for the third quarter ended September 30, 2023, on November 6, 2023. The company also provided an update on its corporate progress, including promising clinical data for its RMC-6236 and RMC-6291 inhibitors and the anticipated acquisition of EQRx, Inc.
Financial Performance
The company reported a net loss of $108.4 million for the quarter ended September 30, 2023, compared to a net loss of $73.3 million for the same period in 2022. The company's cash, cash equivalents, and marketable securities were $813.2 million as of September 30, 2023, compared to $644.9 million as of December 31, 2022. The increase was primarily due to the companys public equity offering in March 2023.
Revenue and Expenses
Revolution Medicines reported zero total revenue for the quarter ended September 30, 2023, compared to $3.4 million for the same period in 2022. Research and development expenses increased to $107.7 million for Q3 2023, up from $69.5 million for Q3 2022. The increase was primarily due to an increase in clinical trial and clinical supply manufacturing expenses for RMC-6236 and RMC-6291, research expenses associated with the companys pre-clinical portfolio, an increase in personnel-related expenses related to additional headcount, and an increase in stock-based compensation. General and administrative expenses were $15.5 million for Q3 2023, compared to $10.4 million for Q3 2022.
EQRx Acquisition
Revolution Medicines announced that it expects to close the acquisition of EQRx, Inc. later this month. The company estimates that the acquisition will add approximately $1.1 billion in net cash proceeds, after estimated post-closing EQRx wind-down and transition costs, or approximately $20 per share of common stock to be issued with the merger.
Clinical and Development Highlights
The company presented promising anti-tumor activity data for its RMC-6236 and RMC-6291 inhibitors. The data demonstrated that treatment with these inhibitors led to meaningful clinical responses in patients with tumors carrying multiple common KRAS mutations. These results support the companys decision to advance these inhibitors into late-stage clinical development.
2023 Financial Guidance
Revolution Medicines is updating its projected full year 2023 GAAP net loss to be between $385 and $415 million, which includes estimated non-cash stock-based compensation expense of $45 million and $50 million. Based on the companys current operating plan, the company projects current cash, cash equivalents, and investments can fund planned operations into 2025.
Explore the complete 8-K earnings release (here) from Revolution Medicines Inc for further details.
This article first appeared on GuruFocus.
