Revolution Medicines Posts Wider-Than-Expected Loss in Q3, Sales Nil

Core Insights - Revolution Medicines (RVMD) reported a Q3 2025 loss of $1.61 per share, which was wider than the Zacks Consensus Estimate of a loss of $1.39, and compared to a loss of 94 cents in the same quarter last year [1][9] - The company currently has no approved products and has not generated any revenue [1] - Year-to-date, RVMD shares have increased by 36%, outperforming the industry growth of 10% [1] Financial Performance - Research and development expenses reached approximately $263 million, reflecting a 73% year-over-year increase, primarily due to higher clinical study and manufacturing costs, as well as increased employee-related expenses [2] - General and administrative expenses were nearly $53 million, up 120% year-over-year, mainly driven by higher employee-related costs [2] - As of September 30, 2025, the company had cash, cash equivalents, and short-term investments totaling $1.9 billion, down from $2.1 billion as of June 30, 2025 [3] Guidance - The company reiterated its full-year operating expenses guidance, expecting a range between $1.03 billion and $1.09 billion, which includes non-cash stock-based compensation expenses of $115-$130 million [4] Pipeline Developments - Revolution Medicines is developing multiple novel drugs targeting the active, GTP-bound form of RAS proteins, with daraxonrasib as the lead pipeline drug, designed to target major RAS mutation hotspots [5] - Daraxonrasib is currently being evaluated in two late-stage registrational studies: RASolve 301 for locally advanced or metastatic RAS-mutated NSCLC and RASolute 302 for second-line metastatic PDAC, with data readout from RASolute 302 expected in 2026 [6][9] - The company is expanding daraxonrasib's development in first-line settings for both NSCLC and PDAC, with studies expected to start before the end of 2025 and in 2026, respectively [7] - Additionally, RVMD is developing mutant-selective inhibitors like elironrasib and zoldonrasib, focusing on specific RAS mutations, and pursuing a combination strategy to enhance efficacy [8][10]