After its IPO nearly two and a half years ago, a California biotech is raising more financing.
Targeted oncology biotech Revolution Medicines announced on Tuesday that it had opened an underwritten public offering, initially slated to be worth $200 million before increasing it to $230 million. It is offering 11.5 million shares at $20 each. The offer is expected to close on Friday.
Investors didn’t react too warmly to the news as the biotech’s stock price $RVMD opened Wednesday down 14%, but rebounded slightly after the morning bell. Revolution did not immediately respond to requests for comment from Terminal News. The biotech initially raised $238 million in its IPO in early 2020, debuting at a price of $17.
The company focused on RAS cancers, a type of mutation that uses the RAS signaling pathway. A year after startup Third Rock ditched its antifungal roots and ventured into oncology in 2017, the biotech has enticed Sanofi into a $500 million deal on its first cancer program – an SHP2 inhibitor that is currently in phase II clinical trials. That same year, Revolution took over the Warp Drive Bio pipeline after that company decided to shut down operations six years after its debut in 2012.
Beyond the SHP2 inhibitor in Revolution’s pipeline, most of its RAS-focused drug candidates are still in the IND activation stage or in preclinical development. These candidates aim for RAS targets including RAS multi, KRAS G12C, KRAS G12D, KRAS G13C and more. The candidate for RAS multi, known as RMC-6236, just started a Phase I/Ib clinical trial late last month, according to a company statement.
In the RAS cancer space, Amgen and Mirati demonstrated early success in treating KRAS years ago by pursuing a target in the G12C variant – with Amgen overtaking Mirati in a win last year with the first approval of sotorasib by the FDA, now marketed as Lumakras.