01—Abstract
Summary
Summary of the 10-Q filed May 8, 2024. Cited figures are marked; the original filing is the authoritative source.
Revolution Medicines, Inc. reported its first-quarter 2024 results in this Form 10-Q for the period ended March 31, 2024.
The company is a clinical-stage precision oncology company developing targeted therapies for RAS-addicted cancers. It reported no revenue for the quarter, compared with $7.0 milliona of collaboration revenue in the year-earlier period, after the Sanofi collaboration terminated in June 2023. Research and development expense rose to $118.0 million from $68.9 million, and general and administrative expense rose to $22.8 million from $13.2 million, producing a net loss of $116.0 million, or $0.70 per share, versus $68.1 million, or $0.72 per share, a year earlier.
Interest income of $23.8 millionb partly offset the operating loss. The balance sheet shows cash, cash equivalents and marketable securities of $1.7 billion at March 31, 2024, with an accumulated deficit of $1.3 billion. Management states that existing cash and marketable securities will fund planned operations for at least 12 months following the filing.
The November 2023 acquisition of EQRx, Inc. added approximately $1.1 billionc in net cash, cash equivalents and marketable securities, and the company issued 54.8 million shares in that transaction. Net cash used in operating activities was $160.6 million for the quarter. The filing focuses on the RMC-6236, RMC-6291 and RMC-9805 RAS(ON) inhibitor programs.
Management expects to disclose updated monotherapy data for RMC-6236 in PDAC and NSCLC, and to initiate planned registrational trials, in the second half of 2024. The filing also notes that the company has not yet obtained regulatory approval for any product candidate and has no products approved for commercial sale.
02—Key points
Key Highlights
- No collaboration revenue in Q1 2024, versus $7.0 million in Q1 2023, following termination of the Sanofi Agreement in June 2023.
- R&D expense increased to $118.0 million from $68.9 million, and G&A expense increased to $22.8 million from $13.2 million.
- Net loss was $116.0 million, or $0.70 per basic and diluted share, compared with a net loss of $68.1 million, or $0.72 per share, in Q1 2023.
- Interest income rose to $23.8 million from $7.0 million on a larger cash and securities balance and higher interest rates.
- Cash, cash equivalents and marketable securities totaled $1.7 billion at March 31, 2024, and management believes this will fund operations for at least 12 months.
- Accumulated deficit reached $1.3 billion; the company has never generated product revenue and has no products approved for commercial sale.
- Planned RMC-6236 registrational trials in PDAC and NSCLC, and updated monotherapy data, are expected in the second half of 2024.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed May 8, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $0$7.01M | −100.0% |
| R&D Expenses | $118.02M$68.95M | +71.2% |
| Operating Expenses | $140.86M$82.17M | +71.4% |
| Operating Income | -$140.86M-$75.16M | −87.4% |
| Net Income | -$116.00M-$68.10M | −70.3% |
| EPS (Basic) | $-0.70$-0.72 | +2.8% |
| EPS (Diluted) | $-0.70$-0.72 | +2.8% |
| Shares Outstanding (Basic) | 164.73M94.83M | +73.7% |
| Shares Outstanding (Diluted) | 164.73M94.83M | +73.7% |
05—Questions
Frequently Asked Questions
Why did revenue drop to zero this quarter?
Collaboration revenue came from the Sanofi Agreement for the SHP2 program. That agreement terminated in June 2023, so the company recognized $7.0 million in Q1 2023 and nothing in Q1 2024.
How much cash does the company have and how long will it last?
The company held $1.7 billion in cash, cash equivalents and marketable securities at March 31, 2024. Management believes this will fund planned operations for at least 12 months following the filing, and it expects to need substantial additional funding to continue development.
What drove the increase in operating expenses?
R&D expense increased by $49.1 million, mainly from a $17.5 million increase in RMC-6236 costs, a $10.0 million rise in employee-related expenses, and higher preclinical and RMC-9805 costs. G&A increased by $9.6 million, mainly from employee-related expenses and stock-based compensation.
What did the EQRx acquisition contribute?
The November 9, 2023 EQRx acquisition was accounted for as a capital-raising transaction. The company issued 54.8 million shares and acquired approximately $1.1 billion in net cash, cash equivalents and marketable securities, which management said added $1.1 billion to working capital.
What are the key upcoming catalysts disclosed?
The company expects to disclose updated RMC-6236 monotherapy data for PDAC and NSCLC in the second half of 2024, and to initiate a global randomized registrational trial in PDAC and a Phase 3 trial in RAS-mutated NSCLC in the second half of 2024. It also expects to disclose initial RMC-9805 monotherapy data in the second half of 2024.
06—Continue