Merck & Co. has entered into preliminary discussions to acquire Revolution Medicines, a clinical‐stage biotech focused on targeting RAS-driven cancers. Sources familiar with the matter indicate that the transaction could value Revolution Medicines at approximately $30 billion. If completed, it would rank among Merck’s largest biotechnology acquisitions, following the company’s $9.5 billion purchase of Acceleron Pharma in 2021.

Revolution Medicines’ lead candidates, including an investigational KRAS( G12C ) inhibitor currently in mid-stage clinical trials, complement Merck’s existing oncology portfolio, which features the blockbuster immunotherapy KEYTRUDA. Analysts estimate that a successful integration of Revolution’s RAS program could add as much as $5 billion in peak annual sales potential by 2030, based on current patient populations and trial readout timelines.

Financing for the proposed deal is expected to involve a combination of cash on hand and debt issuance. Merck reported cash and marketable securities of $15.7 billion at the end of its most recent quarter. Credit rating agencies are likely to monitor leverage ratios closely; a deal of this magnitude could temporarily push Merck's debt-to-EBITDA ratio above its historical range of 1.5–2.0x. Investors will be watching for guidance on anticipated cost synergies, which management has preliminarily pegged at $500 million in annual R&D and SG&A savings by 2025.