Revolution Medicines Acquisition Talks: Merck Eyes Deal

Ed Don | January 21, 2026 | 0

Snack-Sized Version:

Merck is reportedly in talks to acquire Revolution Medicines. The potential deal is valued between $28 billion and $32 billion. As a result, Revolution’s stock soared over 15% overnight. This news highlights a booming M&A cycle in the biotech industry. Moreover, large drug makers like Merck face a looming patent cliff for key drugs. They are consequently looking to acquire new therapies. Revolution is developing a targeted therapy for pancreatic cancer. However, the companies have not yet finalized the deal.

At a Glance
Headline	Merck in talks to acquire Revolution Medicines
Key fact	Potential deal valued between $28 billion and $32 billion.
Why it matters	The news caused RVMD stock to soar over 15% overnight.
Watch next	Confirmation or denial of the acquisition talks from either company.

Source: Company news; SEC filings.

Read the Full Meal:

Pharmaceutical giant Merck is reportedly in talks to acquire Revolution Medicines. The potential deal is valued between $28 billion and $32 billion. As a result, Revolution’s shares soared 15.14% after the news broke. This potential acquisition highlights a booming M&A cycle in the biotech space. In addition, deal volumes in the sector reached $135 billion in 2025. This trend is driven by a looming patent cliff for blockbuster drugs. For instance, Merck’s own cancer treatment, Keytruda, loses protection in 2028. However, sources indicate any potential tie-up is still weeks away.

Merck Eyes Revolution Medicines in Potential $32B Deal Amid Biotech M&A Boom

Patent Cliff Pressure: Merck’s blockbuster cancer drug, Keytruda, is set to lose patent protection in 2028, driving its acquisition strategy.
Biotech M&A Trend: Biotech deal volumes reached $135 billion in 2025, which doubled the volume from 2024.
Pipeline Focus: Revolution is running early-stage trials for a targeted therapy designed for pancreatic cancer.
Risks: The deal is not yet finalized, and other pharmaceutical companies are also reportedly interested in the biotech firm.

Why this can matter for NASDAQ:RVMD holders

Shareholder Value: The acquisition talks immediately boosted Revolution’s stock price by over 15% in overnight trading.
Strategic Importance: A successful deal would give Merck a promising pipeline in targeted cancer therapies ahead of patent expirations.
Industry Signal: This potential deal reinforces the high value placed on innovative biotech firms with strong clinical pipelines.

For more details, see RVMD SEC filings.

What to watch next

Official Statements: Watch for official confirmation or denial of the talks from Merck or Revolution Medicines.
SEC Filings: Monitor for any regulatory filings related to a potential merger agreement in the coming weeks.
Competing Bids: Look for reports of potential competing bids, as the article notes other firms are interested.

Mini FAQ

Why is Merck reportedly trying to buy Revolution Medicines?
Merck is reportedly interested because it needs new drugs. Its popular cancer treatment, Keytruda, loses patent protection in 2028. Therefore, acquiring Revolution Medicines would add a promising cancer therapy pipeline.

How did Revolution Medicines’ stock react to the news?
Revolution Medicines’ stock soared 15.14% overnight after the news broke. This followed a 4.56% gain during the previous trading day. Consequently, investors reacted very positively to the potential deal.

What does Revolution Medicines do?
Revolution Medicines is a cancer drug-maker. It is currently running early-stage clinical trials. Specifically, its trials focus on a targeted therapy to slow tumor growth in pancreatic cancer.