Merck & Co. has formally ended acquisition discussions with Revolution Medicines after both sides failed to agree on valuation. Sources familiar with the talks tell the Wall Street Journal that Merck remained disciplined on deal size despite Revolution’s potential in RAS-pathway oncology, where the target company’s lead asset, daraxonrasib, recently reported encouraging Phase 1 data in RAS-mutant pancreatic cancer. The collapse of negotiations underscores persistent valuation pressures in the high-growth cancer-drug sector and leaves Merck to pursue alternative avenues to bolster its oncology pipeline.

In its most recent SEC filing, Cullen/Frost Bankers reduced its stake in Merck by 7.0%, selling 17,082 shares and leaving a holding valued at approximately $18.9 million. By contrast, Charles Schwab Investment Management augmented its Merck position by 9.4%, adding 4.6 million shares during the prior quarter, while DLD Asset Management and Norges Bank each initiated positions worth roughly $2.9 billion. These mixed moves coincide with Merck’s decision to raise its quarterly dividend to $0.85 per share—up from $0.81—marking a 5% increase and reflecting the company’s strong cash flow and commitment to return capital even as it navigates strategic M&A deliberations.