stockrowWhat it does
Revolution Medicines develops targeted medicines for cancers driven by abnormal RAS proteins, which help cancer cells grow and survive. Founded in 2014 and headquartered in Redwood City, it sells RASONQUE, also known as daraxonrasib, in the United States for eligible patients with metastatic pancreatic cancer. The FDA approved the medicine.
RASONQUE is an oral medicine designed to inhibit several active forms of RAS. The company’s approach uses a proprietary platform to create small molecules that bind to active RAS proteins. Its medicines are designed for use alone, with another RAS inhibitor or alongside other treatments such as chemotherapy or immunotherapy.
The development pipeline also includes zoldonrasib, which targets the RAS G12D mutation; elironrasib, which targets G12C; and RMC-5127, which targets G12V. These drug candidates are being studied across pancreatic, lung and colorectal cancers. RMC-5127 is in a first-in-human trial.
The company conducts global clinical studies and works with other drug developers on combinations. It is also building commercial operations outside the United States, subject to regulatory approvals and local access requirements.
How it makes money
Revolution Medicines earns product revenue from U.S. sales of RASONQUE. The medicine generated net product revenue of $198 million in the third quarter of 2026, its first quarter of commercialization. No full-year 2026 product revenue total is available in the information presented here.
The initial quarter reflected patients transitioning from expanded access to commercial supply, patients who had exhausted other options and were waiting for an approved treatment, and newly eligible patients starting therapy. The transition to commercial supply was completed for U.S. expanded-access patients continuing treatment. The company cautioned that the first two groups are finite launch dynamics and that it was too early to draw conclusions about the normalized launch trajectory.
Revenue from a patient depends in part on how long that patient remains on treatment. The company expects revenue to increasingly reflect treatment of newly eligible patients and their ongoing treatment duration as the launch matures. It has not provided a breakdown of the initial patient groups.
The gross-to-net discount was at the lower end of the company’s anticipated 20% to 30% range in the third quarter of 2026. Revolution Medicines expects that discount to increase within the range as payer mix and discounts mature. Its earlier collaboration revenue came from a Sanofi agreement for the SHP2 program; that agreement ended in June 2023.
The company has also financed operations through equity offerings and the sale of future royalties. Under an agreement with Royalty Pharma, it received an upfront payment in exchange for rights to royalties on specified future product sales.
Customers and how it sells
RASONQUE’s initial U.S. users include eligible patients with metastatic pancreatic cancer. The medicine is prescribed in both academic cancer centers and community oncology practices. Approximately 2.7 thousand unique health care providers prescribed it in the third quarter of 2026; the company described utilization as about a 40% academic contribution and about a 60% community contribution.
The company’s field access and patient-services teams help with benefit verification, coverage navigation and patient support. RASONQUE claims had been reimbursed across health plans collectively representing greater than 90% of U.S. pancreatic cancer covered lives. Formal coverage policies were still developing for most plans, and the company cautioned that some claims reimbursed before policies are established may not be reimbursed afterward.
The United States is the first commercial market. Following a positive European opinion, Revolution Medicines is preparing for a European launch and country-level reimbursement while awaiting a European Commission decision. It is also preparing for a potential launch in Japan, subject to regulatory approval.
It was reported on 4 November 2026 that BeOne received exclusive development and commercialization rights to four clinical-stage RAS(ON) inhibitors in select Asian markets.
Suppliers and costs
Revolution Medicines outsources all manufacturing to contract development and manufacturing organizations. These contractors produce drug substance and finished drug product for clinical trials, development studies and potential commercial supply. The company audits manufacturers before work begins and monitors their operations for compliance with agreed processes and manufacturing regulations.
Research and development costs include payments to contract research organizations, clinical trial sites and manufacturers, as well as laboratory expenses, employee compensation and facilities. Research and development expenses were $417 million in the third quarter of 2026, compared with $263 million in the third quarter of 2025. The increase reflected higher trial and manufacturing costs, personnel costs and stock-based compensation.
Selling, general and administrative expenses were $153 million in the third quarter of 2026, compared with $52.8 million in the third quarter of 2025. The increase included higher personnel and commercial launch expenses. The company expects research and development spending to rise as it advances candidates and conducts larger trials.
- Revenue$11.6M
- Research and development−$423.1M
- Selling, general and administrative−$75.6M
- Operating income−$487.2M
Competitive position
Revolution Medicines competes with approved cancer treatments and therapies in development. Amgen, Eli Lilly and Roche/Genentech have clinical programs targeting KRAS G12C; Eli Lilly and Roche/Genentech also have programs targeting KRAS G12D. BridgeBio Pharma has a clinical program targeting both the active and inactive forms of KRAS G12C. BeOne is among companies conducting other clinical programs directed at mutant RAS.
The company also collaborates with some drug developers. Amgen is evaluating its compound AMG 193 with daraxonrasib in a pancreatic cancer trial, while Bristol Myers Squibb plans to evaluate another compound with daraxonrasib. These collaborations are separate from the companies’ competing RAS programs.
Revolution Medicines’ platform is designed to inhibit active RAS, while the approved KRAS G12C inhibitors sotorasib and adagrasib interact with the inactive form. The company is also developing combinations of its own inhibitors to address potential resistance. It seeks patent and trade-secret protection for its technology, programs and know-how.
Our reading: The proprietary platform and portfolio provide a potential technology advantage, but competing clinical programs limit how much protection the approach alone can establish. Our reading: Intellectual property can support a moat, although its strength depends on obtaining, maintaining and defending rights and operating without infringing others’ rights.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Amgen | KRAS G12C and other mutant RAS clinical programs | High |
| Eli Lilly | KRAS G12C, G12D and other mutant RAS programs | High |
| Roche/Genentech | KRAS G12C, G12D and other mutant RAS programs | High |
| BridgeBio Pharma, Inc. | Dual KRAS G12C ON/OFF clinical program | Medium |
| BeOne Medicines | Other clinical programs directed at mutant RAS | Medium |
| Astellas Pharma Inc. | KRAS G12D and other mutant RAS clinical programs | Medium |
Growth opportunities
Revolution Medicines is pursuing additional uses for RASONQUE and developing other RAS inhibitors for different mutations and combinations. Its global Phase 3 pancreatic cancer studies include RASolute 303, which compares daraxonrasib with and without chemotherapy against chemotherapy in first-line metastatic disease, and RASolute 304, which evaluates it after surgery.
It was reported on 5 November 2026 that U.S. enrollment in RASolute 303 was complete and that patients had begun receiving the combination of RASONQUE and zoldonrasib in RASolute 309. The company is also evaluating zoldonrasib with chemotherapy in the Phase 3 RASolute 305 study.
In lung cancer, RASolve 301 compares daraxonrasib with docetaxel in previously treated patients. The company has also initiated RASolve 308 to evaluate zoldonrasib with standard treatment in RAS G12D non-small cell lung cancer. It was reported on 5 November 2026 that the company was initiating RASonate 312, a global Phase 3 colorectal cancer study of zoldonrasib with cetuximab and chemotherapy.
The company estimates more than 190,000 new RAS-mutant cancer diagnoses each year in the U.S., including approximately 60,000 patients with non-small cell lung cancer, approximately 75,000 with colorectal cancer and approximately 56,000 with pancreatic ductal adenocarcinoma. Geographic expansion is another part of its plans, with European and Japanese launch preparations subject to approvals and access requirements.
- $50.0MFY2019
- $43.0MFY2020
- $29.4MFY2021
- $35.4MFY2022
- $11.6MFY2023
Structural risks
- Development and approval: The business depends on successful clinical development of its current and future candidates. Trials, manufacturing inspections and regulatory reviews are required before additional products or uses can be marketed.
- Funding: The company expects expenses to increase and will require additional funds for development and commercialization preparation. Financing may not be available on acceptable terms, or at all; insufficient funding could delay or reduce programs.
- Early launch demand: The transition from expanded access and the group of patients awaiting commercial availability were finite sources of early demand. The company cautioned that the initial launch was too early to establish a normalized trajectory.
- Coverage and competition: Pricing and competitiveness depend on coverage and reimbursement. Formal U.S. coverage policies are still developing, and competitors may secure approvals sooner or establish positions before Revolution Medicines enters a market.
- Supply and intellectual property: The company relies on third parties for manufacturing and must maintain adequate supply and quality. Its business also depends on protecting its intellectual property and defending against potential third-party claims.
Bottom line
Our reading
Revolution Medicines combines an early U.S. cancer-drug launch with a pipeline of RAS-targeted medicines in clinical development. Its direction depends on sustaining demand beyond the initial launch cohorts and converting trials into approved uses. [call_qa, item1]
The company has a proprietary discovery platform, but it also faces competing programs, substantial development spending and reliance on outside manufacturers. [item1, item7, call_qa]