REDWOOD CITY, Calif., Nov 10, 2021 (GLOBE NEWSWIRE via COMTEX) --
RAS(ON) Inhibitor Development Candidates Targeting KRAS
Progressing Toward the Clinic; Company Showed Additional Preclinical Data Supporting Benefits and Differentiation
Company Poised to Select Additional RAS(ON) Development Candidate in 2021; Mutant-Selective Inhibitors of KRAS [G13C] and KRAS [G12D] Showing Preclinical Promise
Global Phase 2 Study, RMC-4630-03, Recruiting Patients to Evaluate RMC-4630
in Combination with Lumakras(TM)
REDWOOD CITY, Calif., Nov. 10, 2021 (GLOBE NEWSWIRE) -- Revolution Medicines, Inc. /zigman2/quotes/216320743/composite RVMD -8.02% , a clinical-stage precision oncology company developing targeted drugs to inhibit frontier targets that drive and sustain RAS-addicted cancers, today announced its financial results for the third quarter and nine months ended September 30, 2021, and provided a corporate update.
"During the third quarter, the company's unique capabilities and continuing momentum with our innovative RAS(ON) Inhibitors and RAS Companion Inhibitors strengthened Revolution Medicines' leadership position in the quest to successfully treat RAS-addicted cancers. In our RAS(ON) Inhibitor portfolio, development candidates targeting KRAS [G12C] (RMC-6291) and RAS [MULTI] (RMC-6236) have shown compelling features and continue to advance toward the clinic. Exciting mutant-selective inhibitors of KRAS [G13C] and KRAS [G12D] have also emerged from our RAS(ON) drug discovery platform, and we expect to select another development candidate by year end," said Mark A. Goldsmith, M.D., Ph.D., chief executive officer and chairman of Revolution Medicines.
"We have expanded the evaluation of our SHP2 inhibitor, RMC-4630, in combination regimens with direct inhibitors of RAS. In particular, the company recently began recruiting patients in our RMC-4630-03 study under our global partnership with Sanofi and in collaboration with Amgen. This study is intended to further evaluate RMC-4630 and Lumakras(TM) in the treatment of lung cancer as a complement to the ongoing CodeBreaK 101c study of these compounds. In addition, we are gratified that Sanofi plans to sponsor a study of RMC-4630 in combination with Mirati's KRAS [G12C] inhibitor, adagrasib, also under our partnership."
RAS(ON) Inhibitors - Revolution Medicines continues to build on its innovative RAS(ON) Inhibitor platform, producing an expansive collection of tri-complex inhibitors targeting diverse oncogenic RAS variants through highly differentiated chemical and pharmacologic profiles.
RMC-6291 (KRAS [G12C] ) - RMC-6291 is a first-in-class, potent, oral and selective tri-complex inhibitor of KRAS [G12C] (ON) with a differentiated preclinical profile designed to address persistent unmet needs for patients with cancers driven by KRAS [G12C] .
RMC-6236 (RAS [MULTI] ) - RMC-6236 is a first-in-class, potent, oral RAS-selective tri-complex, RAS [MULTI] (ON) inhibitor designed to treat cancers driven by a variety of KRAS mutations, including those that have emerged in patients following treatment with KRAS [G12C] (OFF) inhibitors.
Continued expansion of other RAS(ON) Inhibitor programs - Revolution Medicines continues to progress its growing portfolio of orally bioavailable, mutant-selective RAS(ON) Inhibitors designed to target RAS variants driving RAS-addicted cancers that are unserved by targeted drugs.
RAS Companion Inhibitors - Revolution Medicines continues to advance and expand multiple clinical studies of its RAS Companion Inhibitors designed to provide maximum clinical benefit in RAS-addicted cancers.
RMC-4630 (SHP2 Inhibitor) - RMC-4630, a potent, oral, selective inhibitor of the SHP2 protein, is being advanced in partnership with, and is primarily funded by, Sanofi.
RMC-5552 (mTORC1/4EBP1 Inhibitor) - RMC-5552 is a potent, selective bi-steric inhibitor of mTORC1 that suppresses phosphorylation and inactivation of 4EBP1.
RMC-5845 (SOS1 Inhibitor) - RMC-5845 is a potent, selective, oral inhibitor of SOS1, a major switch in the cycling of RAS(OFF) to RAS(ON).
Third Quarter 2021 Financial Highlights
Cash Position:Cash, cash equivalents and marketable securities were $608.7 million as of September 30, 2021, compared to $440.7 million as of December 31, 2020. The increase was primarily due to proceeds from the company's public equity offering in February 2021.
Revenue: Total revenue consists of revenue from the company's collaboration agreement with Sanofi. During the third quarter of 2021, the company recorded a non-cash, non-recurring GAAP accounting adjustment that reduced collaboration revenue by $8.5 million. This non-cash revenue adjustment relates to the addition of the RMC-4630-03 study to the RMC-4630 development plan, and deprioritization of the RMC-4630-02 study. As a result of these development plan events, the company revised its estimate of the accounting transaction price and percentage of completion of work performed to date under its agreement with Sanofi, which resulted in a cumulative catch-up adjustment to collaboration revenue in this quarter. Total revenue, including the non-cash revenue adjustment, was $1.1 million for the quarter ended September 30, 2021, compared to $12.7 million for the quarter ended September 30, 2020. The decrease was primarily due to the non-cash revenue adjustment and lower reimbursed manufacturing costs.
R&D Expenses: Research and development expenses were $46.5 million for the quarter ended September 30, 2021, compared to $34.9 million for the quarter ended September 30, 2020. The increase was primarily due to an increase in research expenses associated with the company's pre-clinical research portfolio, an increase in personnel-related expenses related to additional headcount, and an increase in stock-based compensation.
G&A Expenses: General and administrative expenses were $7.8 million for the quarter ended September 30, 2021, compared to $5.3 million for the quarter ended September 30, 2020. The increase was primarily due to an increase in stock-based compensation, an increase in personnel-related expenses related to additional headcount, and higher legal and accounting fees.
Net Loss: Net loss was $52.9 million for the quarter ended September 30, 2021, compared to a net loss of $27.2 million for the quarter ended September 30, 2020.
2021 Financial Guidance
Revolution Medicines continues to expect full year 2021 GAAP net loss to be between $170 million and $190 million, which includes estimated non-cash stock-based compensation expense of approximately $20 million.
Revolution Medicines will host a conference call and webcast this afternoon, November 10, 2021, at 4:30 PM Eastern (1:30 PM Pacific).
To listen to the conference call, please dial (833) 423-0425 or (918) 922-3069, provide conference ID: 9757524 and request the Revolution Medicines�?�conference call. To listen to the live webcast, or access the archived webcast, please visit: https://ir.revmed.com/events-and-presentations . Following the live webcast, a replay will be available on the Company's website for at least 14 days.
About Revolution Medicines, Inc.
Revolution Medicines is a clinical-stage precision oncology company focused on developing novel targeted therapies to inhibit high-value frontier targets in RAS-addicted cancers. The company possesses sophisticated structure-based drug discovery capabilities built upon deep chemical biology and cancer pharmacology know-how and innovative, proprietary technologies that enable the creation of small molecules tailored to unconventional binding sites.
The company's R&D pipeline comprises RAS(ON) Inhibitors designed to suppress diverse oncogenic variants of RAS proteins, and RAS Companion Inhibitors for use in combination treatment strategies. RAS(ON) Inhibitors in development include RMC-6291, RMC-6236, and a pipeline of research compounds targeting additional RAS variants. RAS Companion Inhibitors in development include RMC-4630, RMC-5552, and RMC-5845.
Keytruda [(R) ] is a registered trademark of Merck Sharp & Dohme Corp., a subsidiary of Merck & Co. Lumakras(TM) (sotorasib) is a trademark of Amgen, Inc.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements in this press release that are not historical facts may be considered "forward-looking statements," including without limitation statements regarding the company's development plans and timelines and its ability to advance its portfolio and R&D pipeline; dosing and enrollment in the company's clinical trials and the tolerability and potential efficacy of the company's candidates being studied; the ability of the company's therapies to inhibit frontier targets in RAS-addicted cancers; the company's plans to advance the IND-enabling development of RMC-6291, RMC-6236 and RMC-5845; the company's plans to study RMC-5552 in combination with RAS inhibitors; the expected timing of results from the company's Phase 1 study of RMC-5552; the potential advantages and effectiveness of the company's preclinical candidates, including its RAS(ON) Inhibitors; the company's plans to nominate a third development candidate from its RAS(ON) inhibitor portfolio; the selection of a combination dose for the CodeBreak 101c study; and enrollment in and findings from the company's RMC-4630-03 study. Forward-looking statements are typically, but not always, identified by the use of words such as "may," "will," "would," "believe," "intend," "plan," "anticipate," "estimate," "expect," and other similar terminology indicating future results. Such forward-looking statements are subject to substantial risks and uncertainties that could cause the company's development programs, future results, performance or achievements to differ materially from those anticipated in the forward-looking statements. Such risks and uncertainties include without limitation risks and uncertainties inherent in the drug development process, including the company's programs' early stage of development, the process of designing and conducting preclinical and clinical trials, the regulatory approval processes, the timing of regulatory filings, the challenges associated with manufacturing drug products, the company's ability to successfully establish, protect and defend its intellectual property, other matters that could affect the sufficiency of the company's capital resources to fund operations, reliance on third parties for manufacturing and development efforts, changes in the competitive landscape and the effects on the company's business of the worldwide COVID-19 pandemic. For a further description of the risks and uncertainties that could cause actual results to differ from those anticipated in these forward-looking statements, as well as risks relating to the business of Revolution Medicines in general, see Revolution Medicines' Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 10, 2021, and its future periodic reports to be filed with the Securities and Exchange Commission. Except as required by law, Revolution Medicines undertakes no obligation to update any forward-looking statements to reflect new information, events or circumstances, or to reflect the occurrence of unanticipated events.
REVOLUTION MEDICINES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
|Three Months Ended September 30,||Nine Months EndedSeptember 30,|
|Research and development||46,473||34,871||133,267||95,246|
|General and administrative||7,791||5,341||21,758||15,603|
|Total operating expenses||54,264||40,212||155,025||110,849|
|Loss from operations||(53,163||)||(27,551||)||(135,095||)||(76,617||)|
|Other income (expense), net:|
|Total other income, net||223||330||680||1,929|
|Loss before income taxes||(52,940||)||(27,221||)||(134,415||)||(74,688||)|
|Benefit from income taxes||--||--||--||733|
|Redeemable convertible preferred stock dividends - undeclared and cumulative||--||--||--||(2,219||)|
|Net loss attributable to common stockholders||$||(52,940||)||$||(27,221||)||$||(134,415||)||$||(76,174||)|
|Net loss per share attributable to common stockholders - basic and diluted||$||(0.72||)||$||(0.42||)||$||(1.85||)||$||(1.49||)|
|Weighted-average common shares used to compute net loss per share, basic and diluted||73,535,686||64,892,868||72,467,677||51,031,003|
REVOLUTION MEDICINES, INC.
SELECTED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, unaudited)
|September 30,||December 31,|
|Cash, cash equivalents and marketable securities||$||608,655||$||440,741|
|Working capital (1)||571,645||406,946|
|Total stockholders' equity||638,204||474,676|
(1) Working capital is defined as current assets less current liabilities.
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