Merck is reported to be in talks to acquire cancer-drug developer Revolution Medicines, according to people cited by the Financial Times — a move that would further sharpen Big Pharma’s focus on oncology and could reshape takeover chatter across the sector.
The discussions are not done. According to reporting based on people familiar with the matter, any agreement is still some weeks away and remains far from certain. The FT pegged a potential price tag as high as $32 billion; that figure, if accurate, would represent a very rich premium over Revolution’s recent market value, which was above $15.4 billion as of the last close cited in earlier coverage. With usual takeover premiums, some analysts have suggested a deal could land nearer $20 billion or more, although specifics were not disclosed.
Shares of Revolution Medicines jumped on the news — trading spikes ranged from a modest intraday lift to a much larger after-hours move in some reports — while other large pharmaceutical groups have reportedly been circling the biotech. Revolution itself says it does not comment on rumors, and neither Merck nor Revolution had immediately confirmed the talks in the first reports.
What this would mean for Merck and the sector
If Merck follows through, the purchase would reflect a sustained strategy by major drugmakers to buy innovation rather than build every capability in-house. Revolution is known for oncology programs that have drawn interest from buyers eager to beef up pipelines with targeted cancer therapies. For Merck, which already has a blockbuster immunotherapy in its portfolio, the deal could accelerate entry into new targets or complementary mechanisms — the kind of bolt-on science that big pharmas prize.
The size tag mentioned in the coverage — up to $32bn — would make this one of the larger pharma takeovers in recent years. That amplifies two dynamics: the premium buyers are willing to pay for promising oncology assets, and how competitive the bidding for high-potential biotechs has become. Multiple suitors were said to be interested, meaning any transaction could see offers escalate or a rival bidder prevail.
Noise, denials and market ripples
Not every suitor named in early reports was actually in talks. AbbVie explicitly denied that it was negotiating to buy Revolution, telling reporters it was “not in discussions” after an earlier media report suggested the company was in advanced talks. AbbVie’s denial underlines how quickly takeover rumors can spread and how the market reacts — Revolution’s shares have swung on successive headlines and denials.
For investors and industry watchers, the episode is a reminder that M&A chatter often precedes action, and that deals of this scale can take weeks or months to sort out — if they happen at all.
Pharma consolidation has been a recurring theme in recent years, and the hunt for differentiated oncology assets continues to drive valuations higher. At the same time, drugmakers are experimenting with new tools and technologies to accelerate discovery and development; some of that momentum comes from advances in artificial intelligence and large models, which are increasingly part of the conversation around drug discovery. Google’s work on Gemini Deep Research and Microsoft’s recent model launches like MAI-Image-1 illustrate how quickly computational capabilities are moving — not a direct factor in this rumored deal, but part of the broader innovation backdrop that buyers consider when valuing biotechs.
Deal or no deal, the story matters because it highlights a few clear points: major drugmakers remain willing to deploy big checks for promising oncology programs; takeover rumors can drive rapid stock action; and competition among strategic buyers can push price tags much higher than a company’s standalone market value. Keep an eye on official statements from Merck and Revolution — and on filings that would follow if talks move to a definitive agreement.