Revolution Medicines' (RVMD) cancer drug daraxonrasib is likely to keep its lead over emerging competitors, as some investors may be overstating the ability of rival treatments to match its performance, RBC Capital Markets said Tuesday in a report.
RBC said its analysis suggests competing drugs are unlikely to show meaningful differences from daraxonrasib, setting a high bar ahead of upcoming data in pancreatic and lung cancer. Additional results in both diseases are expected to "converge on darax's profile," reinforcing its position, the report said.
RBC said it would be a buyer of Revolution shares ahead of clinical updates from other companies, arguing that more data should highlight daraxonrasib's advantages and ease concerns about competition.
Because daraxonrasib is expected to play a major role in treating pancreatic cancer, a rival drug would need to be clearly better and show a different safety and efficacy profile to take meaningful market share, the report said.
RBC raised its price target on Revolution stock to $182 from $165 with a rating of outperform, speculative risk.
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