Shares of Revolution Medicines Inc (NASDAQ:RVMD) are trading higher on Thursday as a wave of Wall Street firms issued price target increases following the commercial rollout of the company’s first-in-class oncology therapy.
- Revolution Medicines stock is gaining positive traction. What’s pushing RVMD stock higher?
RVMD Stock Extends Gains On Regulatory Breakthrough
The primary catalyst driving price action Thursday is the U.S. Food and Drug Administration’s approval on Wednesday of Rasonque (daraxonrasib) for adults with metastatic pancreatic ductal adenocarcinoma who received prior systemic therapy or cannot receive multiagent chemotherapy. Rasonque becomes the first approved targeted therapy from a new class of broad RAS-selective inhibitors.
The regulatory approval was backed by pivotal Phase 3 RASolute 302 trial data showing Rasonque slashed the risk of death by 60% compared to standard chemotherapy, nearly doubling median overall survival (13.2 months vs. 6.7 months).
Wall Street Analysts Raise Price Targets Following Approval
Following the FDA decision, a number of analyst firms raised their price targets Thursday morning:
- Evercore ISI Group: Maintained Outperform, raised price target to $320.
- HC Wainwright & Co.: Maintained Buy, raised price target to $280.
- Oppenheimer: Maintained Outperform, raised price target to $260.
- RBC Capital: Maintained Outperform, raised price target to $251.
- Truist Securities: Maintained Buy, raised price target to $239.
- Wedbush: Maintained Outperform, raised price target to $225.
Executive Commentary Celebrates Breakthrough Milestone
In a Wednesday press release, Chief Executive Officer and Chairman Dr. Mark A. Goldsmith highlighted the significance of the approval:
"This approval validates more than a decade of work aimed at pancreatic cancer, primarily RAS-driven disease, and one of the most difficult challenges in medicine, cancer biology, and drug discovery… We continue to engage with global regulatory authorities with the goal of expanding and accelerating the reach of RASONQUE."
RVMD Shares Edge Higher Thursday Morning
RVMD Price Action: Revolution Medicines shares were up 1.66% at $219.01 at the time of publication on Thursday. The stock is trading near its 52-week high of $220.34, according to Benzinga Pro data.
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