10 Largest Biotech Hedge Funds and Their Top Stock Picks

7. Revolution Medicines, Inc. (NASDAQ:RVMD)

Number of Hedge Fund Investors  in Q2 2024: 43

Farallon Capital’s Q2 2024 Investment Stake: $378 million

Revolution Medicines, Inc. (NASDAQ:RVMD) is a pre commercial stage biotechnology company headquartered in Redwood City, California. This makes it a significantly more risky player than compared to firms that have secured FDA approval and are shipping their products to the market. Therefore, Revolution Medicines, Inc. (NASDAQ:RVMD)’s hypothesis depends on the treatments that the firm is currently developing. On this front, the firm’s future is heavily dependent on the RM-6236 inhibitor which can target multiple cancers, including pancreatic and small cell lung cancer. Revolution Medicines, Inc. (NASDAQ:RVMD) plans to enter a Phase 3 study for RM-6236’s potential for pancreatic cancer later this year. Results from this study will be crucial, especially as early stage results released in June showed that the drug shrank tumors in roughly 25% of the participants. Revolution Medicines, Inc. (NASDAQ:RVMD) ended Q2 with $1.59 billion in cash which should be sufficient to fund its operations for more than a year.

Revolution Medicines, Inc. (NASDAQ:RVMD)’s management shared key details for RM-6236 during its Q2 2024 earnings call which could help determine the treatment’s future:

“Yes. I mean I think we said before, and I know you and I talked about that, the monotherapy RMC-6236, I think, already qualifies to be included in such a trial. And really, the question is around what — how to play with chemotherapy, what role should that play, should that be an arm in the study? And if so, how should that be done? And that’s principally a safety and tolerability question more than it is an efficacy question. And RMC-6236 clearly is a broad-based inhibitor of RAS. It’s by design. It’s generally well tolerated and safe, but it does have some side effects. Chemotherapy is typically replete with side effects. And so when you put those two together, we need to have confidence going into the study, going into a registration study that, that combination will not blow up for patients.

So that’s really what we’re doing is trying to figure that out. There are many combinations, as you point out, that we couldn’t pursue. I wouldn’t consider RMC-9805, specifically, part of that determination for 6236 going into front line. It’s it own entity, and how we’ll deal with that, we’ll describe over time as we reveal data about that interesting compound.”