Revolution Medicines, Inc. (RVMD) experienced a significant after-hours plunge of 7.98% on Wednesday, following the release of its fourth-quarter financial results and a new capital-raising plan.
The biotechnology company reported a quarterly loss of $1.86 per share, which was wider than the FactSet consensus estimate for a loss of $1.58 per share. This represents a 66% increase in losses compared to the same period last year. The net loss for the quarter widened to $364.9 million, driven by a substantial rise in research and development expenses, which increased to $294.9 million.
Further pressuring the stock was the company's filing for a common stock offering of up to $1.0 billion, as disclosed in an SEC filing just minutes before the sharp price decline. Investors often react negatively to such offerings due to potential dilution of existing shares. Additionally, the company provided guidance for 2026, expecting GAAP operating expenses to be between $1.6 billion and $1.7 billion.
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