EQRx Acquisition Revolutionizes Biopharmaceutical Industry as Revolution Rolls Out All-Stock Deal and $1B Cash Injection

Revolution Medicines, Inc. has just announced an ambitious acquisition of troubled Massachusetts-based biotech firm EQRx, in an all-stock transaction that would skyrocket its net cash balance sheet by an impressive $1 billion. The California-based oncology company is poised to expand its offerings and reach within the biotech market, marking a major milestone in its business.

In November, the highly anticipated merger between Revolution Medicines and EQRx will close. As a result, EQRx’s research programs and intellectual properties will be returned to its partners, while Revolution will use the $1 billion it raised to fuel their three RAS assets. After months of anticipation, the deal finally appears to be reaching its conclusion.

Revolution is on track to launch a pivotal trial in 2024 for their priority asset, RMC-6236: a promising inhibitor of multiple forms of the RAS protein, including cancerous mutations and wildtype isoforms which interact with oncogenic variants. Furthermore, RMC-6291 and RMC-9805 have also been identified as priority assets that target KRASG12C and KRASG12D mutations respectively, offering much needed hope in the fight against cancer.

Revolution’s cutting-edge tri-complex technology platform created three proprietary RAS inhibitors – a major milestone in oncology research. These inhibitors selectively target RAS(ON), the active and GTP-bound forms of the RAS protein, and block its binding to surrounding proteins. As a result, it disables the detrimental oncogenic signaling pathways, opening new, groundbreaking ways to fight cancer.

EQRx CEO Melanie Nallicheri is excited to announce the addition of Revolution’s portfolio of RAS(ON) inhibitors to their arsenal – a powerful tool to tackle one of the most difficult oncology challenges out there. With its deep pockets, EQRx not only strengthens its long-term vision but also provides stockholders an opportunity to benefit from near-term and long-term value catalysts.

After the successful merger with Revolution, troubled yet ambitious EQRx has decided to cease trading on the Nasdaq. When they initially launched in July 2020, EQRx had the backing of a massive $200 million in Series A funds. Ambitions aside, the goal was to create a market-based solution to the ever-increasing cost of drugs, according to the former CEO Alexis Borisy.

EQRx made history when it launched with a bold mission to reimagine the drug discovery pipeline and make medications more affordable through advances in science and technology. The plan paid off, and in August 2021, the company successfully merged with CM Life Sciences III, sealing their legacy with a $1.8 billion cash reserve onto Nasdaq’s trading market. Now, EQRx stands poised to usher in a new era of accessible medical treatments.

EQRx ran into difficulty in the development of sugemalimab, an antibody for non-small cell lung cancer, and was forced to refocus its efforts on two other drugs: aumolertinib and lerociclib. To address this challenge, the company began working towards a market-based pricing model for these alternatives. Sadly, the initially planned path for sugemalimab would have no commercially viable outcome.

In early 2023, EQRx had to take an unfortunate step in order to become a more efficient and cost-effective operation when they reduced their headcount by 18%. But just two months later, in May, the company hit a larger obstacle when they decided to ax their aumolertinib venture, which resulted in the unfortunate loss of 50% of their staff.

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