EQRX - Revolution Medicines Is Hard To Understand

2024-02-01 16:02:50 ET

Summary

• Revolution Medicines, Inc. has interesting science and early positive data.
• However, their market cap is too high for a company such as Revolution Medicines.
• Their R&D expenses are very high.
• The EQRx, Inc. deal is highly interesting, but not enough to convince me to buy shares of Revolution Medicines.

I covered Revolution Medicines, Inc. ( RVMD ) in July, when I said that although they are doing interesting science, they are too early stage to justify their near $3bn market cap. The stock is up just 1.39% from that time, so I was surprised to see a $4.5bn market cap showing up on Seeking Alpha. On further check, though, the market cap turns out to be $3.04bn, which sounds about right, given there’s no news of any change in share count in the interim....

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