Merck in Talks to Acquire Revolution Medicines in Potential $32 Billion Oncology Deal

Merck & Co. (NYSE: MRK) is in talks to acquire Revolution Medicines (NASDAQ: RVMD), a cancer-focused biotechnology firm, in a transaction that could value the company at $28 billion to $32 billion, according to a report by the Financial Times. The discussions remain ongoing and a deal has not yet been finalized, with any agreement potentially still several weeks away.

Revolution Medicines, which is based in Redwood City, California, is developing a portfolio of novel cancer therapies that target the active, GTP-bound form of RAS proteins, known as RAS(ON), a pathway long considered difficult to drug. The company’s approach is designed to address resistance mechanisms that have limited the durability of first-generation RAS inhibitors currently on the market.

If completed, the acquisition would significantly bolster Merck’s oncology pipeline. The centerpiece of Revolution’s portfolio is daraxonrasib, an investigational oral RAS(ON) multi-selective inhibitor being evaluated in late-stage clinical trials for previously treated metastatic pancreatic ductal adenocarcinoma (PDAC) and non-small cell lung cancer (NSCLC). Data from a phase III PDAC study are expected this year, with additional phase III trials in first-line metastatic PDAC and NSCLC planned to begin in 2026.

Revolution is also advancing earlier-stage, mutant-selective RAS inhibitors, including elironrasib and zoldonrasib, which are being studied across multiple solid tumor indications, either as standalone therapies or in combination regimens.

Following the Financial Times report, shares of Revolution Medicines rose about 12% in after-hours trading, extending a strong rally that has lifted the stock roughly 36% over the past week. The company’s market capitalization reached approximately $20 billion on January 8, after shares previously touched an all-time high of $105. Earlier reports from The Wall Street Journal suggested AbbVie (NYSE: ABBV) had been in advanced talks to acquire Revolution Medicines, though AbbVie later denied those claims. The interest from multiple large drugmakers underscores the strategic value of Revolution’s RAS-focused pipeline.

The potential acquisition aligns with Merck’s broader strategy to offset the upcoming 2028 loss of exclusivity for Keytruda, its blockbuster PD-L1 cancer therapy that currently accounts for more than half of the company’s pharmaceutical revenue. Merck has pursued several acquisitions over the past year as it seeks to diversify and strengthen its oncology portfolio ahead of the patent expiration. If finalized, the transaction would represent the first major biotech mega-deal of 2026 and the largest in the sector since Pfizer’s (NYSE: PFE) $43 billion acquisition of Seagen in 2023.

About Merck & Co.

Merck & Co. (NYSE: MRK) is a global pharmaceutical company focused on developing medicines and vaccines across oncology, infectious diseases, cardiometabolic disorders, and immunology. Headquartered in the United States, Merck is best known for its cancer immunotherapy Keytruda and continues to invest heavily in research, development, and strategic acquisitions to drive long-term growth.

About Revolution Medicines

Revolution Medicines (NASDAQ: RVMD) is a clinical-stage biotechnology company developing targeted therapies for cancers driven by RAS mutations. The company’s proprietary RAS(ON) platform is designed to inhibit the active form of RAS proteins and overcome resistance seen with earlier treatments, with a pipeline spanning pancreatic, lung, and other solid tumors.

At the time of publishing, Stocks.News holds positions in Merck & Co., and Pfizer as mentioned in the article.