Revolution Medicines Announces Commencement of Public Offering of Common Stock

Rhea-AI Summary

Revolution Medicines, Inc. (Nasdaq: RVMD) has initiated an underwritten public offering to sell up to $300 million of its common stock. The offering includes a 30-day option for underwriters to purchase an additional $45 million worth of shares. The offering is subject to market conditions and might not be completed as proposed. J.P. Morgan, TD Cowen, SVB Securities, and Guggenheim Securities are the joint book-running managers for this offering. The company focuses on developing targeted therapies for RAS-addicted cancers, with a robust R&D pipeline centered on RAS(ON) and Companion Inhibitors.

Positive

• The offering aims to raise up to $300 million to fund R&D activities.
• Potential increase in capital could enhance the company's pipeline for targeted therapies.

Negative

• The offering may lead to shareholder dilution depending on the final number of shares sold.

REDWOOD CITY, Calif., March 01, 2023 (GLOBE NEWSWIRE) -- Revolution Medicines, Inc. (Nasdaq: RVMD), a clinical-stage oncology company developing targeted therapies for RAS-addicted cancers, today announced that it has commenced an underwritten public offering to sell up to $300 million of shares of its common stock. All of the shares of common stock are being offered by Revolution Medicines. In addition, Revolution Medicines intends to grant the underwriters a 30-day option to purchase up to an additional $45 million of shares of common stock. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

J.P. Morgan, TD Cowen, SVB Securities and Guggenheim Securities are acting as joint book-running managers for the proposed offering. UBS Investment Bank is acting as lead manager.

A shelf registration statement relating to these securities was filed with the U.S. Securities and Exchange Commission (SEC) on March 2, 2021, and automatically became effective upon filing. This offering is being made solely by means of a prospectus. A copy of the preliminary prospectus supplement and the accompanying prospectus relating to this offering, when available, may be obtained for free by visiting EDGAR on the SEC’s website at www.sec.gov. Alternatively, a copy of the preliminary prospectus supplement and the accompanying prospectus relating to this offering, when available, may be obtained by contacting: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at (866) 803-9204 or by email at prospectus-eq_fi@jpmchase.com; Cowen and Company, LLC, 599 Lexington Avenue, New York, NY 10022, by email at Prospectus_ECM@cowen.com or by telephone at (833) 297-2926; SVB Securities LLC, 53 State Street, 40th Floor, Boston, MA 02109, Attention: Syndicate Department, by telephone at (800) 808-7525, ext. 6105, or by email at syndicate@svbsecurities.com; or: Guggenheim Securities, LLC Attention: Equity Syndicate Department, 330 Madison Avenue, New York, NY 10017 or by telephone at (212) 518-9544, or by email at GSEquityProspectusDelivery@guggenheimpartners.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About Revolution Medicines, Inc.

Revolution Medicines is a clinical-stage oncology company developing novel targeted therapies for RAS-addicted cancers. The company’s R&D pipeline comprises RAS(ON) Inhibitors designed to suppress diverse oncogenic variants of RAS proteins, and RAS Companion Inhibitors for use in combination treatment strategies.

Forward Looking Statements

To the extent that statements contained in this press release are not descriptions of historical facts regarding Revolution Medicines, they are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding completion, timing and size of the proposed public offering that involve risks and uncertainties, including, without limitation, risks and uncertainties related to market conditions and the satisfaction of closing conditions related to the proposed public offering. Such forward-looking statements involve substantial risks and uncertainties that relate to future events, and the actual results could differ significantly from those expressed or implied by the forward-looking statements. Revolution Medicines undertakes no obligation to update or revise any forward-looking statements. For a further description of the risks and uncertainties relating to Revolution Medicines’ business in general, see the preliminary prospectus supplement related to the proposed public offering and Revolution Medicines’ current and future reports filed with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 27, 2023.

Contacts

For Investors:
Vida Strategic Partners
Stephanie Diaz
415-675-7401
sdiaz@vidasp.com

For Media:
Vida Strategic Partners
Tim Brons
415-675-7402
tbrons@vidasp.com 

FAQ

What is the purpose of Revolution Medicines' $300 million stock offering?

The offering aims to raise funds for research and development of targeted therapies for RAS-addicted cancers.

Who is managing the public offering for Revolution Medicines?

J.P. Morgan, TD Cowen, SVB Securities, and Guggenheim Securities are the joint book-running managers.

When was the press release regarding the stock offering issued?

The press release was issued on March 1, 2023.

What is the potential dilution for shareholders from this offering?

The offering may result in dilution depending on the final number of shares sold, especially if the underwriters exercise the option for additional shares.