Revolution Medicines (RVMD) receiving a broader-than-expected Food and Drug Administration label for Rasonque strengthens its commercial outlook, Oppenheimer said.
Management emphasized that the label does not set specific eligibility criteria, giving doctors and patients flexibility in treatment decisions, the analysts said in a note Wednesday, adding that this could allow Rasonque to be used in the first line before ongoing registrational studies are completed.
Management said the company is well prepared for the commercial launch, with supply, distribution, sales teams, patient services, and reimbursement support all operational from day one.
The company set a wholesale acquisition cost of $39,800 per 30-day supply. More than 2,000 patients have received Rasonque through preapproval access programs. Oppenheimer said it should support a smoother launch and greater physician familiarity with the drug.
"Rasonque's label flexibility, unprecedented survival benefit, compelling patient-reported outcomes, and launch readiness meaningfully increase the probability of commercial success," the analysts added.
Oppenheimer raised its price target on Revolution Medicines to $260 from $230, with an outperform rating.
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