According to the Financial Times, Merck is in talks to acquire Revolution Medicines, a Redwood City, California-based cancer drug developer, in a deal that could value the company at roughly $28 billion to $32 billion.
People familiar with the discussions told the FT that negotiations are ongoing and a transaction is not yet final, with any deal likely still weeks away and other potential bidders also showing interest. After the report, Revolution’s shares rose in regular trading and then jumped again after hours, pushing its market value to about $24 billion.
Revolution Medicines is running trials of targeted therapies aimed at hard-to-treat cancers, including pancreatic cancer and non-small cell lung cancer, and analysts have described the situation as a possible large, pre-commercial biotech acquisition given the products are still awaiting key data and approvals.
The FT said the deal would fit Merck’s push to strengthen its pipeline ahead of Keytruda’s patent expiration starting in 2028, following major recent moves such as its Verona Pharma acquisition and a Cidara Therapeutics deal.