Revolution Medicines Stock Sinks After Merck Deal Talks Collapse

Merck & Co., Inc. (NYSE:MRK) has reportedly ended discussions to acquire cancer drug developer Revolution Medicines, Inc. (NASDAQ:RVMD) after the two sides disagreed on valuation.

Earlier in January, the Financial Times reported that Merck is reportedly in talks to acquire Revolution Medicines in a deal potentially valued at between $28 billion and $32 billion.

The talks had valued Revolution Medicines at roughly $30 billion. Citing people familiar with the matter, the Wall Street Journal report on Sunday signaled Merck’s continued discipline on deal size despite interest in high-growth oncology assets.

Merck’s Acquisition Strategy

Merck CEO Robert Davis addressed the company’s acquisition strategy earlier this month at the J.P. Morgan Healthcare Conference. He said Merck has primarily been targeting deals valued at $15 billion or less, while remaining open to larger transactions under the right conditions.

Earlier in ...