01—Abstract
Summary
Summary of the 10-K filed February 28, 2022. Cited figures are marked; the original filing is the authoritative source.
Revolution Medicines, Inc. (RVMD) is a clinical-stage precision oncology company developing targeted therapies for RAS-addicted cancers.
As of December 31, 2021, it had no approved products and had never generated product revenue. Its net loss was $187.1 milliona in 2021, up from $108.2 million in 2020 and $47.7 million in 2019, and its accumulated deficit reached $452.6 million. Collaboration revenue, which comes entirely from the Sanofi Agreement for the SHP2 inhibitor RMC-4630, fell to $29.4 million in 2021 from $43.0 million in 2020, including an $8.5 million cumulative catch-up adjustment.
Research and development expense rose to $186.9 millionb. The company ended 2021 with $577.1 million in cash, cash equivalents and marketable securities. It raised $281.1 million in a February 2021 follow-on offering and established a $250 million at-the-market program with Cowen in November 2021, under which it sold $10.4 million of stock by year-end.
Management states that existing resources will fund planned operations for at least 12 months after the report date, while also noting that it expects to need substantial additional funding for future research and development. The pipeline centers on four RAS(ON) inhibitors in IND-enabling development (RMC-6236, RMC-6291, RMC-9805 and RMC-8839), with IND submissions for RMC-6236 and RMC-6291 planned for the first half of 2022.
RMC-4630 is in clinical studies, partly through Sanofi, which shares U.S. profits and losses equally and can terminate the agreement for convenience. The company also reported a confirmed partial response with a 63%c reduction from baseline in an early RMC-5552 study, and it had 188 full-time employees as of December 31, 2021.
02—Key points
Key Highlights
- Net loss of $187.1 million in 2021, compared with $108.2 million in 2020 and $47.7 million in 2019; accumulated deficit of $452.6 million.
- Collaboration revenue of $29.4 million in 2021, down from $43.0 million in 2020, reflecting an $8.5 million cumulative catch-up adjustment tied to the Sanofi Agreement.
- Research and development expense of $186.9 million in 2021, up from $132.3 million in 2020, driven mainly by preclinical third-party costs.
- Cash, cash equivalents and marketable securities of $577.1 million at December 31, 2021, with management stating funding for at least 12 months.
- Four RAS(ON) inhibitors in IND-enabling development; IND submissions for RMC-6236 and RMC-6291 planned for the first half of 2022.
- Sanofi collaboration on SHP2 inhibitor RMC-4630 includes equal U.S. profit and loss sharing and up to $520 million in milestones, but Sanofi may terminate for convenience.
- No approved products and no product revenue to date; the company expects losses for at least the next several years.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 28, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $29.39M$42.98M | −31.6% |
| R&D Expenses | $186.95M$132.25M | +41.4% |
| Operating Expenses | $217.40M$153.68M | +41.5% |
| Operating Income | -$188.01M-$110.70M | −69.8% |
| Interest Expense | $12K$71K | −83.1% |
| Net Income | -$187.00M-$108.16M | −72.9% |
| EPS (Basic) | $-2.57$-2.01 | −27.9% |
| EPS (Diluted) | $-2.57$-2.01 | −27.9% |
| Shares Outstanding (Basic) | 72.81M54.87M | +32.7% |
| Shares Outstanding (Diluted) | 72.81M54.87M | +32.7% |
05—Questions
Frequently Asked Questions
How much cash does Revolution Medicines have and how long will it last?
The company had $577.1 million in cash, cash equivalents and marketable securities as of December 31, 2021. Management believes these resources will fund planned operations for at least 12 months following the date of the report, though it also states it expects to need substantial additional funding for future research and development.
Why did collaboration revenue decline in 2021?
Collaboration revenue fell to $29.4 million from $43.0 million in 2020. The filing attributes the decline primarily to an $8.5 million cumulative catch-up adjustment resulting from changes to development plans under the Sanofi Agreement, including the addition of RMC-4630-03 and the cessation of enrollment in RMC-4630-02, as well as lower reimbursed manufacturing costs.
What is the role of Sanofi in the company's business?
Sanofi holds a worldwide exclusive license to SHP2 inhibitors, including RMC-4630. Sanofi reimburses most development costs, the companies share U.S. profits and losses equally, and Sanofi pays tiered royalties on sales outside the U.S. Sanofi may terminate the agreement for convenience, which would end the company's rights to receive these payments.
When does the company expect its first RAS(ON) inhibitor to enter clinical testing?
The company plans to submit an IND for RMC-6236 and for RMC-6291 in the first half of 2022, and it expects to provide early evidence of activity for these compounds in 2023. An IND for RMC-9805 is planned for the first half of 2023 and for RMC-8839 in the second half of 2023.
06—Continue