Merck & Co (MSD) is no longer in talks to acquire oncology biotech Revolution Medicines after negotiations hit a stumbling block over valuations, according to the Wall Street Journal (WSJ).
Citing people familiar with the matter, the WSJ said that the two companies could not agree on a price. MSD had been looking to complete a deal in the $28bn-$32bn range, according to a Financial Times (FT) report from 12 January.
Despite MSD and Revolution not aligning so far, talks could restart. Negotiations could also continue with another party, should a suitor show acquisition interest.
A Revolution spokesperson told Pharmaceutical Technology: "As a company policy, we do not comment on rumors or speculation". MSD did not immediately respond.
Talks over a potential deal for Revolution dominated the build-up to the 2026 JP Morgan Healthcare Conference.
On 7 January, the WSJ reported that AbbVie was in advanced talks to acquire Revolution in a deal worth more than $20bn.
An AbbVie spokesperson confirmed to Pharmaceutical Technology that the company was not in talks to acquire Revolution. On 8 January, the FT then reported that MSD was mulling an acquisition.
On the same day, a spokesperson for Revolution told Pharmaceutical Technology: “As a company policy, Revolution Medicines does not comment on rumours or speculation.”
Revolution’s most advanced asset is daraxonrasib, a pan-RAS inhibitor taken orally. The drug is in Phase III studies for pancreatic cancer and non-small cell lung cancer (NSCLC) as a monotherapy. With a market cap of around $23bn, the company has seen its stock climb over the last year on the back of its promising portfolio, boosted even further this month by the rumoured takeover talks. Share prices in the biotech sector are currently trading around 65% higher compared to January 2025.
Though interest in Revolution is still high in the big pharma industry, it was thought that MSD’s deal for Revolution would represent the first pharma megadeal in 2026. If a deal were to fall between the $28bn and $32bn goalposts, it would mark the biggest M&A in healthcare since Pfizer acquired cancer biotech Seagen for $43bn in December 2023.
Observers will be closely watching if talks resume between a suitor and Revolution in the coming months, especially as the pharma industry rides a wave of dealmaking optimism. As per a report by EY, global life sciences M&A investment totalled $240bn in 2025, an 81% increase from $130bn in 2024. EY’s team pointed to a return to large-scale transactions among big pharma despite fewer overall deals. Many major drugmakers are facing patent expirations for blockbuster products, leading to increased dealmaking in the M&A arena.
Speaking to Pharmaceutical Technology in December 2025, EY LifeSciences global deals leader Subin Baral commented: “We don’t see the pace of dealmaking slowing [in 2026] as the availability of biopharma firepower will remain, and loss of exclusivity demand will continue.”
Editor's note: This article was updated on 26 January to include comment from a Revolution spokesperson.
