Revolution Medicines' Pancreatic Cancer Drug Nearly Doubled Survival. Is the High-Flying Stock Still a Buy?

RVMD has surged more than 150% this year after the FDA approved Rasonque, its pancreatic cancer drug that nearly doubled patient survival. The question for traders now is whether the rally has room left.

The commercial launch is already producing results. Rasonque generated $198 million in revenue from just five weeks of sales in the third quarter. That figure shows fast early uptake, though the company still posted a Q3 loss of $407.5 million, so it remains deeply unprofitable.

The bull case rests on the company's RAS-inhibitor platform, which has de-risked the underlying biological mechanism. Multiple phase 3 trials are underway, extending the story beyond a single approval. Analyst price targets point to significant upside from current levels, according to the source.

Interpretation: a 150% run-up means much of the approval is likely priced in. The $198 million launch quarter is a strong first data point, but a loss twice that size means the stock is being valued on future sales and pipeline expansion rather than current earnings. RVMDW, the related warrant, carries the same underlying exposure.