NEW YORK – Precision oncology-focused Revolution Medicines announced on Monday after the close of the market that it is hoping to raise approximately $158 million in net proceeds from an underwritten public offering of 4,000,000 shares of its common stock at $42.14 per share, the last reported stock price on the Nasdaq on Jan. 29.
The company said it will also grant underwriters a 30-day option to purchase an additional 600,000 shares at the public offering price, which if exercised, will increase the gross proceeds to around $182 million, minus underwriting costs and discounts.
Revolution is planning to use the funds, along with its existing cash, cash equivalents and marketable securities, to advance certain RAS(ON) inhibitor programs. Specifically, the company is hoping to move its RAS multi-kinase inhibitor RMC-6236 and its KRAS G12C inhibitor RMC-6291 into clinical development, as well as make forward progress on its RAS companion inhibitor programs involving the mTORC1/4EBP1 inhibitor RMC-5552 and SOS1 inhibitor RMC-5845. Revolution said it may also use the proceeds for other general corporate purposes, such as hiring additional personnel, capital expenditures, and operating costs.
Revolution is also developing the SHP2 inhibitor RMC-4630 in combination with different drugs in KRAS-mutated cancers, including cobimetinib (Genentech/Exelixis' Cotellic), osimertinib (AstraZeneca's Tagrisso), Amgen's investigational drug soratinib.
As of Sept. 30, 2020, the Redwood City, California-headquartered firm had $466.1 million in cash, cash equivalents and marketable securities.
In Tuesday afternoon trade on the Nasdaq, shares of Revolution were up 5 percent at $47.13.