Investing.com – BofA Securities raised its price target on shares (NASDAQ:RVMD) to $170 from $115 while maintaining a Buy rating on Monday. The stock surged to $133.06, reflecting a remarkable 170% gain over the past year, though InvestingPro analysis suggests the shares may be overvalued at current levels compared to its Fair Value estimate.
The firm increased its probability of success to 95% in second-line treatment and 90% in first-line treatment from 65% previously. Peak penetration estimates rose to 40% from 30%. An InvestingPro tip notes the company is not yet profitable, typical for clinical-stage biotechs, though its strong balance sheet with more cash than debt supports ongoing development.
BofA now projects total unadjusted peak sales for daraxonrasib at $12.3 billion after accounting for royalties under the Royalty Pharma deal. The drug contributes $110 to the firm’s total valuation for Revolution Medicines.
The firm expects approval of daraxonrasib in second-line pancreatic ductal adenocarcinoma in early 2027. Approvals in first-line pancreatic ductal adenocarcinoma and non-small cell lung cancer are projected for 2028.
BofA also increased the probability of success for elironrasib in non-small cell lung cancer and zoldonrasib in pancreatic ductal adenocarcinoma by 10 percentage points each. The firm does not currently model sales in colorectal cancer. For deeper insights into Revolution Medicines’ financial health and growth prospects, investors can access the comprehensive Pro Research Report, available for this and 1,400+ other US equities on InvestingPro.
In other recent news, Revolution Medicines announced positive topline results from its Phase 3 RASolute 302 clinical trial. The trial evaluated the efficacy of daraxonrasib in patients with metastatic pancreatic ductal adenocarcinoma who had previously received treatment. The study revealed that daraxonrasib achieved a median overall survival of 13.2 months compared to 6.7 months for standard chemotherapy, demonstrating statistically significant improvements in progression-free survival and overall survival. The drug was also noted to have a manageable safety profile with no new safety signals.
Following these results, Leerink Partners raised its price target for Revolution Medicines shares from $115 to $147, maintaining an Outperform rating. Similarly, Raymond James increased its price target from $135 to $175, while keeping a Strong Buy rating. Both firms made these adjustments after the trial met all primary and key secondary endpoints. These developments highlight the potential impact of daraxonrasib on the treatment of pancreatic cancer.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Leave a comment