Dec 31, 2024

Revolution Medicines Q4 2024 Earnings Report

Revolution Medicines reported a larger net loss despite strong cash reserves.

Key Takeaways

Revolution Medicines reported no revenue in Q4 2024, reflecting the termination of its Sanofi collaboration. The company posted a net loss of $194.6 million, driven by increased R&D expenses of $188.1 million. Cash, cash equivalents, and marketable securities reached $2.3 billion following an $823 million public equity offering. The company continues advancing its RAS(ON) inhibitors, with multiple Phase 3 trials underway.

Net loss widened to $194.6 million from $161.5 million in Q4 2023.

No revenue was reported, down from $742,000 in Q4 2023.

R&D expenses increased to $188.1 million due to clinical trial expansions.

Cash reserves grew to $2.3 billion following a successful equity offering.

Total Revenue
$0
Previous year: $742K
-100.0%
EPS
-$1.12
Previous year: -$1.14
-1.8%
R&D Expenses
$188M
Previous year: $148M
+26.7%
G&A Expenses
$28.2M
Previous year: $32.2M
-12.5%
Cash Balance
$2.29B
Previous year: $1.85B
+23.5%
Cash and Equivalents
$2.29B
Previous year: $1.85B
+23.5%
Total Assets
$2.56B
Previous year: $2.06B
+24.1%

Revolution Medicines

Revolution Medicines

Forward Guidance

Revolution Medicines expects a GAAP net loss between $840 million and $900 million for FY 2025, with sufficient cash reserves projected to fund operations into the second half of 2027.

Positive Outlook

  • Strong cash position of $2.3 billion following a successful equity raise.
  • Ongoing Phase 3 trials for daraxonrasib in pancreatic and lung cancer.
  • Plans to initiate two additional registrational trials in pancreatic cancer in 2025.
  • Advancing multiple RAS(ON) inhibitor combination therapies.
  • Exploring potential commercial launch strategies, including U.S. field teams.

Challenges Ahead

  • No reported revenue, marking a decline from Q4 2023.
  • Expected net loss of up to $900 million in 2025.
  • High R&D spending continues to drive financial losses.
  • Uncertainty regarding future partnerships outside the U.S.
  • Potential regulatory and competitive risks in the oncology market.