Revolution Medicines stock surges over 20% on potential AbbVie acquisition

Investing.com -- Revolution Medicines (NASDAQ: RVMD) stock surged 29% before trading was halted twice due to volatility following a Wall Street Journal report that AbbVie (NYSE: ABBV) is in advanced talks to acquire the clinical-stage precision oncology company.

According to people familiar with the matter, AbbVie is nearing a deal that could value Revolution Medicines at approximately $20 billion or more, representing a premium to the company’s current market value of around $16 billion. The acquisition could be finalized soon, barring any last-minute complications.

The news triggered significant gains across the oncology biotech sector, with several of Revolution’s peers seeing substantial price movements. Verastem (NASDAQ: VSTM) jumped 25%, while Tango Therapeutics (NASDAQ: TNGX) climbed 20%, and Erasca (NASDAQ: ERAS) soared 27%.

Revolution Medicines specializes in developing novel targeted therapies for RAS-addicted cancers. The potential acquisition could strengthen AbbVie’s oncology portfolio as it seeks to expand its presence in the precision medicine space.

The companies have not officially confirmed the talks, and it remains unclear exactly how much AbbVie is offering for the biotech firm. Trading in Revolution Medicines shares was halted following the rapid price increase triggered by the report.

You May Also Be Interested In

• e-commerce stocks split as Rosenblatt favors Etsy, eBay; Chewy rated neutral
• Bernstein upgrades Analog Devices on Q3 beat, improving risk-reward
• Deutsche Bank calls Treasury buyback doubling similar to ’operation twist’