Latest news with #RevolutionMedicines
Business Insider
01-06-2025
- Business
- Business Insider
Bank of America Securities Remains a Buy on Revolution Medicines (RVMD)
Bank of America Securities analyst Alec Stranahan reiterated a Buy rating on Revolution Medicines (RVMD – Research Report) on May 30 and set a price target of $78.00. Confident Investing Starts Here: Stranahan covers the Healthcare sector, focusing on stocks such as Novavax, Y-Mabs Therapeutics, and TG Therapeutics. According to TipRanks, Stranahan has an average return of -11.2% and a 35.35% success rate on recommended stocks. Currently, the analyst consensus on Revolution Medicines is a Strong Buy with an average price target of $70.63.
Yahoo
12-05-2025
- Business
- Yahoo
Tango Therapeutics Reports First Quarter 2025 Financial Results and Provides Business Highlights
– Data update from ongoing TNG462 Phase 1/2 monotherapy trial expected 2H 2025 – – Combination trial of TNG462 + Revolution Medicines RAS(ON) inhibitors on track for enrollment 2Q 2025 – – Cash position of $217 million as of March 31, 2025; cash runway extended into 1Q 2027 with reduction of preclinical spend – BOSTON, May 12, 2025 (GLOBE NEWSWIRE) -- Tango Therapeutics, Inc. (NASDAQ: TNGX), a clinical-stage biotechnology company committed to discovering and delivering the next generation of precision cancer medicines, reported its financial results for the first quarter ended March 31, 2025, and provided business highlights. 'Accumulating data continue to support TNG462 as the potential best-in-class PRMT5 inhibitor,' said Barbara Weber, M.D., President and CEO of Tango Therapeutics. 'We anticipate presenting a fulsome efficacy, safety and tolerability data update on TNG462 monotherapy later this year, with a focus on pancreatic and lung cancer, and remain on track with our goal of initiating our first TNG462 monotherapy registrational study in pancreatic cancer next year. We also are moving forward rapidly with key clinical combinations and, based on strong preclinical data, we are focused on combining TNG462 with Revolution Medicine's RAS(ON) inhibitors daraxonrasib and zoldonrasib in pancreatic and lung cancer. Finally, given market conditions and our strong conviction in TNG462, we have taken steps to extend our cash runway and focus resources on our PRMT5 programs, reducing spend on our preclinical pipeline and deferring some clinical combination studies designed primarily to assess tolerability with standard-of-care regimens.' Pipeline Update TNG462, a potentially best-in-class MTA-cooperative PRMT5 inhibitor Enrollment in dose expansion is ongoing and a clinical data update on the TNG462 Phase 1/2 trial is expected in the second half of this year. This update is anticipated to provide sufficient information to inform a registrational trial in pancreatic cancer next year and determine the next steps for the development path in NSCLC. Based on promising preclinical data, the Company is on track to initiate a combination trial with TNG462, including RAS(ON) multi-selective inhibitor, daraxonrasib, and RAS(ON) G12D-selective inhibitor, zoldonrasib (Revolution Medicines). This trial is expected to begin enrolling in the second quarter of 2025. TNG456, a next-generation brain-penetrant MTA-cooperative PRMT5 inhibitor in development for glioblastoma Preclinical studies demonstrate TNG456 brain exposure has the potential to be sufficient for meaningful efficacy in glioblastoma. The Company plans to begin enrolling a Phase 1/2 clinical trial evaluating TNG456 in patients with MTAP-deleted solid tumors, focused on glioblastoma in 2Q 2025. TNG260, a first-in-class, highly selective CoREST complex inhibitor Proof-of-mechanism has been established for TNG260 based on pharmacodynamic data from on-treatment patient biopsies, with favorable safety, tolerability and pharmacokinetic profiles shown at the expansion dose of 80 mg QD (once daily) to date. The dose expansion cohort of the TNG260 Phase 1/2 trial is ongoing in NSCLC. The study is evaluating the pharmacokinetics, pharmacodynamics, safety and efficacy of TNG260 in combination with pembrolizumab in patients with an STK11 loss-of-function mutation. The Company plans to provide a clinical update on TNG260 in the second half of 2025. TNG961, a first-in-class, potent and selective HBS1L molecular glue degrader for the treatment of cancers with FOCAD deletion TNG961 is a development candidate targeting HBS1L in FOCAD-deleted solid tumors. FOCAD deletion occurs in 20-40% of all MTAP-deleted cancers and is common in NSCLC, occurring in ~7% of these patients. 20-40% of cancers with MTAP deletion have a coincident FOCAD deletion on chromosome 9, and cancers with FOCAD deletion are dependent on HBS1L for mRNA processing, thus protein synthesis. By degrading HBS1L and disrupting the HBS1L/PELO complex, TNG961 causes tumor regression in FOCAD-deleted preclinical models of multiple histologies. Preclinical presentations at AACR The Company presented five posters at the 2025 American Association for Cancer Research (AACR) Annual Meeting, April 25-30, 2025. These posters highlight preclinical data from our PRMT5 programs and underscore the potential of these molecules as both standalone treatments and as key combination partners in MTAP-deleted cancers, including in combination with KRAS-inhibitors. Preclinical data from TNG961, an HBSL1 molecular glue degrader, also was presented. Upcoming Milestones TNG462 Phase 1/2 clinical data update expected in 2H 2025 TNG456 phase 1/2 trial enrollment expected to begin 2Q 2025 Enrollment in combination trial with TNG462 + RAS(ON) multi-selective inhibitor, daraxonrasib and TNG462 + RAS(ON) G12D-selective inhibitor, zoldonrasib, (Revolution Medicines) expected to begin 2Q 2025 TNG260 clinical data update expected in 2H 2025 Financial Results As of March 31, 2025, the Company held $216.7 million in cash, cash equivalents and marketable securities, which the Company now expects to be sufficient to fund operations into the first quarter of 2027. Extension of cash runway was primarily due to reduction of preclinical pipeline, target discovery efforts and the associated research headcount as well as the deferral of clinical combination studies primarily designed to assess tolerability of TNG462 with standard-of-care agents. Collaboration revenue was $5.4 million for the three months ended March 31, 2025, compared to $6.5 million for the same period in 2024. Research costs incurred under the collaboration were lower during the three months ended March 31, 2025, which resulted in lower collaboration revenue amounts recognized. Research and development expenses were $36.4 million for the three months ended March 31, 2025, compared to $38.1 million for the same period in 2024. The change is due to decreased spend on discontinued clinical programs (TNG908 and TNG348), partially offset by increased spend on the advancement of TNG961 and TNG456 as well as personnel-related costs to support our research and development activities. General and administrative expenses were $11.5 million for the three months ended March 31, 2025, compared to $10.7 million for the same period in 2024. The change was primarily due to increases in personnel-related costs. Net loss for the three months ended March 31, 2025 was $39.9 million, or $0.36 per share, compared to a net loss of $37.9 million, or $0.35 per share, in the same period in 2024. About Tango Therapeutics Tango Therapeutics is a clinical-stage biotechnology company dedicated to discovering novel drug targets and delivering the next generation of precision medicine for the treatment of cancer. Using an approach that starts and ends with patients, Tango leverages the genetic principle of synthetic lethality to discover and develop therapies that take aim at critical targets in cancer. For more information, please visit Forward-Looking Statements Certain statements in this press release may be considered forward-looking statements. Forward-looking statements generally relate to future events, Tango's future operating performance and goals, the anticipated benefits of therapies and combination therapies (that include a Tango pipeline product), as well as the expectations, beliefs and development objectives for Tango's product pipeline and clinical trials. In some cases, you can identify forward-looking statements by terminology such as 'may', 'should', 'expect', 'intend', 'will', 'goal', 'estimate', 'anticipate', 'believe', 'predict', 'designed,' 'potential' or 'continue', or the negatives of these terms or variations of them or similar terminology. For example, implicit or explicit statements concerning the following include or constitute forward-looking statements: Dr. Weber's statements in this press release and statements regarding: (i) the potential of the Company's PRMT5 molecules, as both standalone treatments and in combination with RAS(ON)-inhibitors; (ii) the preclinical research of the Company's PRMT5 inhibitors, as a monotherapy and in combination, and the expectation that they may pave the way for future development opportunities; (iii) expectations regarding the anticipated benefits of our molecules, including in regards to TNG456's potential to have meaningful clinical benefit in glioblastoma; (iv) expectations for TNG462, including our plans to present a fulsome efficacy, safety and tolerability update on TNG462 monotherapy in 2025 (with a focus on pancreatic and lung cancer) and our belief that TNG462 has the potential to be a best-in-class PRMT5 inhibitor; (v) beliefs regarding the ability of the ongoing TNG462 clinical trial to provide sufficient data to inform a registrational trial in pancreatic cancer and determine the next steps for a development path in lung cancer; (vi) our plans and timing for a combination trial with TNG462 and RAS(ON) inhibitors from Revolution Medicines (vii) our expectations and plans regarding TNG961; and (viii) the expected timing of: (a) development candidate declaration for certain targets; (b) initiating IND-enabling studies; (c) filing INDs; (d) clinical trial initiation, enrollment, dose escalation and dose expansion (including for combination studies); (e) disclosing initial, interim, updated, additional and final clinical trial results (including for combination studies), including expectations to present a clinical update for TNG462 and TNG260 in the second half of 2025; and (f) the expected benefits of the Company's development candidates and other product candidates. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Tango and its management, are inherently uncertain. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: the benefits of product candidates seen in preclinical tests and analyses may not be evident when tested in later preclinical studies or in clinical trials or when used in broader patient populations (if approved for commercial sale); Tango has limited experience conducting clinical trials (and does and will continue to rely on a third party to operate its clinical trials) and may not be able to commence its clinical trials (including opening clinical trial sites, dosing the first patient, and continued enrollment and dosing of an adequate number of clinical trial participants) when expected, may not be able to continue dosing, initiate dose escalation and/or dose expansion on anticipated timelines, and may not generate or report clinical trial results (including final, initial, interim, updated clinical trial results or additional safety and efficacy data and the establishment of proof-of-mechanism and proof-of-concept) in the anticipated timeframe (or at all); future clinical trial data releases may differ materially from initial or interim data from our current and future clinical trials; Tango's pipeline products may not be safe and/or effective in humans; Tango has a limited operating history and has not generated any revenue to date from product sales, and may never become profitable; other companies may be able to identify and develop product candidates more quickly than the Company and commercially introduce the product prior to the Company; the Company's proprietary discovery platform is novel and may not identify any synthetic lethal targets for future development; the Company may not be able to identify development candidates on the schedule it anticipates due to technical, financial or other reasons; the Company may not be able to file INDs for development candidates on time, or at all, due to technical or financial reasons or otherwise; the Company may utilize cash resources more quickly than anticipated; Tango will need to raise capital in the future and if we are unable to raise capital when needed or on attractive terms, we would be forced to delay, scale back or discontinue some of our development programs or future commercialization efforts (which may delay filing of INDs, dosing patients, initiation of dose expansion, reporting clinical trial results and filing new drug applications); Tango's approach to the discovery and development of product candidates is novel and unproven, which makes it difficult to predict the time, cost of development, and likelihood of successfully developing any products; the Company may be unable to advance our preclinical development programs into and through the clinic for safety or efficacy reasons or commercialize our product candidates or we may experience significant delays in doing so as a result of factors beyond Tango's control; the Company may not be able to realize the benefits of orphan drug or Fast Track designation (and such designations may not advance any anticipated approval timelines); the expected benefits of our product candidates in patients as single agents and/or in combination may not be realized; the Company may experience delays or difficulties in the initiation, enrollment, or dosing of patients in clinical trials or the announcement of clinical trial results, Tango may not identify or discover additional product candidates or may expend limited resources to pursue a particular product candidate or indication and fail to capitalize on product candidates or indications that may be more profitable or for which there is a greater likelihood of success; the Company's product candidates may cause adverse or other undesirable side effects (or may not show requisite efficacy) that could, among other things, delay or prevent regulatory approval; our dependence on one or a limited number third parties for conducting clinical trials and producing drug substance and drug product (including drug substance, which is currently sole sourced); government regulation may negatively impact the Company's business, including the potential approval of the BIOSECURE Act; the impact of trade restrictions such as sanctions, tariffs, reciprocal and retaliatory tariffs, legal actions or enforcement and inflation rates on our business, financial condition, and results of operations; inadequate funding for or disruptions at the U.S. Food and Drug Administration or other government agencies may slow the time necessary for new drugs to be reviewed and/or approved or prevent these agencies from performing business functions on which the operation of our business may rely (which could negatively impact our business), and uncertainty around the U.S. presidential administration's approach to governmental agencies and/or product candidate approvals may present challenges for our business or create a more costly environment in which to pursue the development of new therapeutic candidates; and our ability to obtain and maintain patent and other intellectual property protection for our technology and product candidates or the scope of intellectual property protection obtained is not sufficiently broad. Additional information concerning risks, uncertainties and assumptions can be found in Tango's filings with the Securities and Exchange Commission (SEC), including the risk factors referenced in Tango's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as supplemented and/or modified by its most recent Quarterly Report on Form 10-Q. You should not place undue reliance on forward-looking statements in this press release, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein. Tango specifically disclaims any duty to update these forward-looking statements. Investors and Media:Elizabeth HickinIR@ media@ Statements of Operations (In thousands, except share and per share data) Three Months EndedMarch 31, 2025 2024 Collaboration revenue $ 5,392 $ 6,471 Operating expenses: Research and development 36,442 38,065 General and administrative 11,480 10,661 Total operating expenses 47,922 48,726 Loss from operations (42,530 ) (42,255 ) Other income, net 2,688 4,381 Loss before income taxes (39,842 ) (37,874 ) Provision for income taxes (34 ) (40 ) Net loss $ (39,876 ) $ (37,914 ) Net loss per common share – basic and diluted $ (0.36 ) $ (0.35 ) Weighted average number of common shares outstanding – basic and diluted 110,301,256 108,171,463 Consolidated Balance Sheets (In thousands) March 31, December 31, 2025 2024 Assets Current assets: Cash and cash equivalents $ 58,432 $ 69,530 Marketable securities 158,292 188,387 Restricted cash 428 — Prepaid expenses and other current assets 7,778 8,426 Total current assets 224,930 266,343 Property and equipment, net 7,539 8,102 Operating lease right-of-use assets 39,697 39,476 Restricted cash, net of current portion 2,139 2,567 Other assets 1 4 Total assets $ 274,306 $ 316,492 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 3,239 $ 1,601 Accrued expenses and other current liabilities 10,374 16,497 Operating lease liabilities 2,824 2,454 Deferred revenue 19,480 17,618 Total current liabilities 35,917 38,170 Operating lease liabilities, net of current portion 34,122 34,039 Deferred revenue, net of current portion 37,511 44,766 Total liabilities 107,550 116,975 Total stockholders' equity 166,756 199,517 Total liabilities and stockholders' equity $ 274,306 $ 316,492 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-04-2025
- Business
- Yahoo
Revolution Medicines to Report Financial Results for First Quarter 2025 After Market Close on May 7, 2025
REDWOOD CITY, Calif., April 30, 2025 (GLOBE NEWSWIRE) -- Revolution Medicines, Inc. (Nasdaq: RVMD), a late-stage clinical oncology company developing targeted therapies for patients with RAS-addicted cancers, today announced that it will report financial results for the first quarter of 2025 on Wednesday, May 7, 2025, after market close. At 4:30 p.m. ET that day (1:30 p.m. PT), members of Revolution Medicines' senior management team will host a webcast to discuss the financial results for the quarter and provide an update on corporate progress. To listen to the live webcast, or access the archived webcast, please visit: Following the live webcast, a replay will be available on the company's website for at least 14 days. About Revolution Medicines, Medicines is a late-stage clinical oncology company developing novel targeted therapies for patients with RAS-addicted cancers. The company's R&D pipeline comprises RAS(ON) inhibitors designed to suppress diverse oncogenic variants of RAS proteins. The company's RAS(ON) inhibitors daraxonrasib (RMC-6236), a RAS(ON) multi-selective inhibitor; elironrasib (RMC-6291), a RAS(ON) G12C-selective inhibitor; and zoldonrasib (RMC-9805), a RAS(ON) G12D-selective inhibitor, are currently in clinical development. The company anticipates that RMC-5127, a RAS(ON) G12V-selective inhibitor, will be its next RAS(ON) inhibitor to enter clinical development. Additional development opportunities in the company's pipeline focus on RAS(ON) mutant-selective inhibitors, including RMC-0708 (Q61H) and RMC-8839 (G13C). For more information, please visit and follow us on LinkedIn. Revolution Medicines Media & Investor Contact:media@ in to access your portfolio
Yahoo
27-04-2025
- Business
- Yahoo
Revolution Medicines Presents Initial Data from Zoldonrasib (RMC-9805) Study in Patients with KRAS G12D Mutant Non-Small Cell Lung Cancer at the 2025 AACR Annual Meeting
Zoldonrasib, a RAS(ON) G12D-selective inhibitor, demonstrated acceptable tolerability and encouraging initial antitumor activity in patients with previously treated KRAS G12D mutant non-small cell lung cancer REDWOOD CITY, Calif., April 27, 2025 (GLOBE NEWSWIRE) -- Revolution Medicines, Inc. (Nasdaq: RVMD), a late-stage clinical oncology company developing targeted therapies for patients with RAS-addicted cancers, today announced new clinical data for zoldonrasib (RMC-9805), a RAS(ON) G12D-selective inhibitor, as monotherapy in patients with KRAS G12D mutant non-small cell lung cancer (NSCLC). Results were highlighted in the official press program at the American Association for Cancer Research (AACR) Annual Meeting in Chicago, Illinois, and will be featured in a late-breaking oral presentation on April 27, 2025, at 5:00 p.m. Central Time. 'We are pleased to share new clinical data for zoldonrasib, our innovative, oral RAS(ON) G12D-selective inhibitor, which demonstrates acceptable safety and tolerability and encouraging initial antitumor activity in patients with non-small cell lung cancer. These data reinforce the clinical potential of zoldonrasib following the initial tolerability and antitumor activity reported late last year in patients with pancreatic ductal adenocarcinoma,' said Mark A. Goldsmith, M.D., Ph.D., chief executive officer and chairman of Revolution Medicines. 'Together these results support further evaluation of zoldonrasib as monotherapy and in combination as we continue efforts to advance innovative targeted medicines for patients living with these hard-to-treat cancers.' RMC-9805-001 is a multicenter, open-label, dose escalation and dose-expansion Phase 1 study designed to evaluate zoldonrasib in patients with advanced solid tumors harboring a KRAS G12D mutation. As of a December 2, 2024 data cutoff date, 90 solid tumor patients were treated with 1200 mg once daily (QD), the candidate recommended Phase 2 dose. In these patients, zoldonrasib demonstrated an acceptable safety profile, that was generally consistent with previously reported data for this compound in pancreatic cancer, and was generally well tolerated. The most common treatment-related adverse events (TRAEs) occurring in at least 10% of patients were nausea (39%), diarrhea (24%), vomiting (18%), and rash (12%). TRAEs were primarily Grade 1 or 2 in severity, with two patients (2%) experiencing Grade 3 events that resolved following dose interruption. Zoldonrasib had a favorable mean dose intensity of 98% and no dose limiting toxicities were observed. Preliminary antitumor activity was assessed in 18 efficacy-evaluable patients with NSCLC at the 1200 mg QD dose. The objective response rate (confirmed or pending confirmation) was 61% (n=11) and the disease control rate was 89% (n=16). 'There is a high unmet need for new treatments within this patient population as there are currently no targeted therapies approved for any RAS G12D mutant cancer,' said Kathryn Arbour, M.D., thoracic medical oncologist at Memorial Sloan Kettering Cancer Center and principal investigator and lead author for the RMC-9805-001 presentation. 'While the data are from an early, small subset of patients, it is encouraging to see this level of tolerability and antitumor activity in patients with NSCLC carrying this RAS mutation.' About Revolution Medicines, Medicines is a late-stage clinical oncology company developing novel targeted therapies for patients with RAS-addicted cancers. The company's R&D pipeline comprises RAS(ON) inhibitors designed to suppress diverse oncogenic variants of RAS proteins. The company's RAS(ON) inhibitors daraxonrasib (RMC-6236), a RAS(ON) multi-selective inhibitor; elironrasib (RMC-6291), a RAS(ON) G12C-selective inhibitor; and zoldonrasib (RMC-9805), a RAS(ON) G12D-selective inhibitor, are currently in clinical development. The company anticipates that RMC-5127, a RAS(ON) G12V-selective inhibitor, will be its next RAS(ON) inhibitor to enter clinical development. Additional development opportunities in the company's pipeline focus on RAS(ON) mutant-selective inhibitors, including RMC-0708 (Q61H) and RMC-8839 (G13C). For more information, please visit and follow us on LinkedIn. Forward Looking Statements This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements in this press release that are not historical facts may be considered "forward-looking statements," including without limitation statements regarding progression of clinical studies and findings from these studies, including the safety, tolerability and antitumor activity of the company's candidates being studied and the durability of these results; dosing and enrollment in the company's clinical trials; and the potential of zoldonrasib as a therapeutic option for pancreatic ductal adenocarcinoma or non small cell lung cancer. Forward-looking statements are typically, but not always, identified by the use of words such as "may," "will," "would," "believe," "intend," "plan," "anticipate," "estimate," "expect," and other similar terminology indicating future results. Such forward-looking statements are subject to substantial risks and uncertainties that could cause the company's development programs, future results, performance or achievements to differ materially from those anticipated in the forward-looking statements. Such risks and uncertainties include without limitation risks and uncertainties inherent in the drug development process, including the company's programs' current stage of development, the process of designing and conducting preclinical and clinical trials, risks that the results of prior clinical trials may not be predictive of future clinical trials, clinical efficacy, or other future results, the regulatory approval processes, the timing of regulatory filings, the challenges associated with manufacturing drug products, the company's ability to successfully establish, protect and defend its intellectual property, other matters that could affect the sufficiency of the company's capital resources to fund operations, reliance on third parties for manufacturing and development efforts, changes in the competitive landscape, and the effects on the company's business of the global events, such as international conflicts or global pandemics. For a further description of the risks and uncertainties that could cause actual results to differ from those anticipated in these forward-looking statements, as well as risks relating to the business of Revolution Medicines in general, see Revolution Medicines' Annual Report on Form 10-K filed with the Securities and Exchange Commission (the 'SEC') on February 26, 2025, and its future periodic reports to be filed with the SEC. Except as required by law, Revolution Medicines undertakes no obligation to update any forward-looking statements to reflect new information, events or circumstances, or to reflect the occurrence of unanticipated events. Revolution Medicines Media & Investor Contact:media@ investors@ in to access your portfolio
Yahoo
31-03-2025
- Business
- Yahoo
Revolution Medicines (RVMD): The Best Debt Free Mid Cap Stock to Buy Now
We recently compiled a list of the 10 Best Debt Free Mid Cap Stocks to Buy Now. In this article, we are going to take a look at where Revolution Medicines, Inc. (NASDAQ:RVMD) stands against the other debt free mid cap stocks. Debt-free mid-cap stocks currently offer compelling investment opportunities, especially in today's high-interest-rate environment. With borrowing costs elevated, companies burdened by debt face increased financial pressure, making debt-free businesses more resilient and attractive. Mid-cap stocks, in particular, balance growth potential with relative stability, often providing more agility and higher upside than large-cap counterparts. Moreover, companies with strong balance sheets and zero debt have more cash capacity to reinvest profits into growth initiatives rather than servicing the debt. As legendary investor Peter Lynch succinctly advised, 'Companies that have no debt can't go bankrupt,' highlighting the inherent safety and resilience found in debt-free investments. Many modern fund managers support the philosophy of Peter Lynch and prefer companies that have an insignificant impact on profitability from interest costs. For reference, the Fundsmith Equity Fund, which has outperformed the world stock market index by 3 percentage points on average since inception, highlights that one of the secrets of its long-term success is, among others, picking stocks with low amounts of debt. They illustrate their performance by calculating that the average company they own has an interest coverage three times higher than the average company in the US stock market – this is primarily achieved by carefully selecting debt-free companies. They also argue that companies with strong balance sheets are more likely to be priced at higher valuations: 'Our portfolio consists of companies that are fundamentally [including debt levels] a lot better than the average of those in the broader market, so it is no surprise that they are valued more highly than the average S&P 500 company.' READ ALSO: Less than two years have passed since the FED funds rate reached its peak in mid-2023. Contrary to a common misconception, we believe that the effects of high interest rates in the economy have not yet been felt at the individual company level. The reason is simple – most of the debt held by the average US company was issued prior to 2023 at lower coupon rates. In this context, as the lower interest rate debt is gradually refinanced and rolled over, it is inevitable that the actual interest costs of companies will become higher, directly impacting their profitability and cash flows. Lower free cash flow, in turn, means less reinvestment into the business and, as a result, weaker long-term growth potential. This is the mechanism through which the current elevated interest rates may finally hit the stock market in the coming years. The problem of high interest rates in the economy is further aggravated by the policies of the new US administration. The FED mentions that they are not rushing to lower interest rates because the Trump 2.0 Tariff Turmoil is very likely to cause a spike in inflation in April, as (or if) the previously announced tariffs are enforced. Also, the US job market, manufacturing activity, and consumers are still relatively healthy, albeit there is a slight slowdown in optimism and spending appetite. Under such conditions, any premature cut in interest rates by the FED risks stagflation, which is one of the most destructive scenarios possible. The key takeaway for investors is that interest rates in the economy are likely to stay elevated above 4% for the foreseeable future, meaning that the impact on the profitability of high-debt companies is likely to increase over time. In this context, debt-free companies, and particularly mid-caps, shall be preferred by investors as they offer the most resilience and stability for the future. A researcher poring over test results, illustrating the breakthrough potential of biotechnology. We used a screener to identify mid cap companies between $2 billion and $10 billion market capitalization, with little to no debt. To quantify the debt level, we compared the enterprise value with market capitalization and opted for the stocks with the smallest difference between the two measures. Then we compared the list with our Q4 2024 proprietary database of hedge funds' ownership and included in the article the top 10 stocks with the largest number of hedge funds that own the stock. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Number of Hedge Fund Holders: 60 Enterprise Value: $4.93 billion Market Capitalization: $7.08 billion Revolution Medicines, Inc. (NASDAQ:RVMD) is a clinical-stage biotech company developing cancer drugs that target a key group of genetic mutations known as RAS, which are commonly found in difficult-to-treat tumors. The company uses proprietary technology to design small-molecule drugs that block these cancer-driving proteins. Its main drug candidates are in human trials and focus on types of lung and pancreatic cancer where current treatment options are limited. Based in California, RVMD aims to build a pipeline of precision therapies that could address a broad segment of the oncology market. Revolution Medicines, Inc. (NASDAQ:RVMD) is making meaningful strides in addressing pancreatic cancer, a historically difficult-to-treat indication, with its lead candidate RMC-6236 (Daraxonrasib). The ongoing RASolute 302 trial is targeting second-line treatment in approximately 420 patients and is seeing strong enrollment momentum, with data readouts expected in 2026. Early clinical signals have been compelling, with median progression-free survival reaching 8.8 months and median overall survival extending to 14.5 months at the 300mg dose – markedly higher than the historical benchmarks of approximately 3 and 6 months, respectively. These data suggest the potential for material improvement over current standards of care. Looking ahead, Revolution Medicines, Inc. (NASDAQ:RVMD) is broadening its pancreatic cancer pipeline by launching additional trials in 2025, including a first-line metastatic study and a trial in early-stage resectable disease for adjuvant use. Importantly for patient-centric outcomes, reported quality-of-life improvements such as reduced pain and weight gain support clinical value beyond survival metrics. RVMD is also advancing Zoldonrasib, a selective G12D inhibitor, which has shown promising monotherapy activity, with more data anticipated in the coming quarters. The company's strategy includes developing RAS-targeted combination therapies, such as dual inhibitor regimens and collaborations with Tango Therapeutics, potentially enhancing durability and broadening the market opportunity. Overall RVMD ranks 1st on our list of the 10 best debt free mid cap stocks to buy now. While we acknowledge the potential of RVMD as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RVMD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks To Buy Now According to Billionaires Disclosure: None. This article is originally published at . Sign in to access your portfolio
