01—Abstract
Summary
Summary of the 10-Q filed August 7, 2024. Cited figures are marked; the original filing is the authoritative source.
Revolution Medicines, Inc. reported its Form 10-Q for the quarter ended June 30, 2024.
The company is a clinical-stage precision oncology company developing RAS(ON) inhibitors and RAS Companion Inhibitors. It recorded no collaboration revenue in the three and six months ended June 30, 2024, compared with $3.8 milliona and $10.8 million in the same periods of 2023, because the Sanofi agreement terminated in June 2023. Net loss was $133.2 million for the quarter and $249.2 million for the six months, versus $98.3 million and $166.4 million a year earlier.
Research and development expense rose to $134.9 millionb for the quarter and $253.0 million for the six months, and general and administrative expense rose to $21.7 million and $44.5 million, respectively. As of June 30, 2024, cash, cash equivalents and marketable securities totaled $1.6 billion, and the accumulated deficit was $1.4 billion. Management states that existing resources will fund planned operations for at least 12 months after the filing, while also stating that substantial additional financing will be required.
Subsequent events include a July 2024 sale of 1,294,050 shares under the 2021 ATM Program for gross proceeds of $60.8 millionc, and an August 2024 agreement with TD Securities (USA) LLC for a new at-the-market program of up to $500 million, which replaces the 2021 program. Clinically, the filing describes RMC-6236 (RAS(ON) multi-selective) data from the RMC-6236-001 study as of a May 11, 2024 cutoff, including a 7.6-month median PFS in second-line metastatic PDAC for patients with G12X, G13X and Q61X mutations, and plans for a Phase 3 RASolute 302 study expected to start in the second half of 2024. Updated NSCLC data and several combination readouts are expected in the fourth quarter of 2024.
02—Key points
Key Highlights
- Collaboration revenue was zero for Q2 2024 and the six months ended June 30, 2024, down from $3.8 million and $10.8 million in the prior-year periods, following termination of the Sanofi Agreement in June 2023.
- Net loss was $133.2 million for the three months ended June 30, 2024 (vs. $98.3 million in 2023) and $249.2 million for the six months (vs. $166.4 million).
- Research and development expenses were $134.9 million for the quarter, up from $98.0 million, driven primarily by RMC-6236, RMC-6291 and RMC-9805 clinical programs and headcount growth.
- Cash, cash equivalents and marketable securities totaled $1.6 billion at June 30, 2024, against an accumulated deficit of $1.4 billion; the filing states the company will require substantial additional financing.
- Net cash used in operating activities was $288.7 million for the six months ended June 30, 2024, compared with $129.5 million a year earlier.
- Planned Phase 3 RASolute 302 study of RMC-6236 in second-line metastatic PDAC is expected to begin in the second half of 2024, with a Phase 3 NSCLC trial expected to start in Q4 2024.
- In August 2024 the company entered a new at-the-market sales agreement with TD Securities (USA) LLC for up to $500 million, replacing the 2021 ATM Program.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2024filed August 7, 2024Financial Statements
Q2 FY2024 against Q2 FY2023
| Line item | Q2 FY2024Q2 FY2023 | Change |
|---|---|---|
| Revenue | $0$3.82M | −100.0% |
| R&D Expenses | $134.93M$97.98M | +37.7% |
| Operating Expenses | $156.64M$112.62M | +39.1% |
| Operating Income | -$156.64M-$108.80M | −44.0% |
| Net Income | -$133.23M-$98.30M | −35.5% |
| EPS (Basic) | $-0.81$-0.92 | +12.0% |
| EPS (Diluted) | $-0.81$-0.92 | +12.0% |
| Shares Outstanding (Basic) | 165.14M106.88M | +54.5% |
| Shares Outstanding (Diluted) | 165.14M106.88M | +54.5% |
05—Questions
Frequently Asked Questions
Why did revenue fall to zero in the second quarter of 2024?
Collaboration revenue came from the Sanofi Agreement for the SHP2 program. That agreement was terminated in June 2023, so the company recognized no collaboration revenue in the three and six months ended June 30, 2024. Prior-year collaboration revenue was $3.8 million for the quarter and $10.8 million for the six months.
How much cash does the company have and how long will it last?
As of June 30, 2024, the company had $1.6 billion in cash, cash equivalents and marketable securities. Management believes these resources will enable it to fund planned operations for at least 12 months following the filing date, but the filing also states that it will require substantial additional financing for its development efforts.
What were the key clinical updates for RMC-6236?
As of a May 11, 2024 data cutoff, 127 patients with previously treated PDAC were evaluated across 160 mg to 300 mg daily cohorts. About 22% had Grade 3 or higher treatment-related adverse events. In second-line PDAC, median PFS was 8.1 months for KRAS G12X tumors and 7.6 months for G12X, G13X and Q61X tumors. The company plans a Phase 3 RASolute 302 study in second-line metastatic PDAC and expects updated NSCLC data in Q4 2024.
What equity financing activity occurred after the quarter ended?
In July 2024 the company sold 1,294,050 shares under the 2021 ATM Program for gross proceeds of $60.8 million, or $59.6 million net of commissions and expenses. In August 2024 it entered a new sales agreement with TD Securities (USA) LLC for up to $500 million under a 2024 ATM Program, which replaces the 2021 program.
06—Continue