RVMD Secures $250M Loan, Declines Royalty Financing Following FDA Approval

Following the U.S. FDA approval of its drug RASONQUE™, Revolution Medicines has drawn down a $250 million senior secured term loan from Royalty Pharma. The company also announced it elected not to pursue a separate, optional $250 million financing from Royalty Pharma that would have involved selling a portion of the drug's future revenue rights.

Key Details

• Loan Secured: The company drew down the $250 million 'Tranche A Loan' on October 8, 2026, as part of a larger $750 million loan facility.
• Royalty Financing Declined: Revolution Medicines opted not to sell a 'Tranche 3 Incremental Revenue Participation Right' to Royalty Pharma for up to $250 million, a right triggered by the same FDA approval.
• Loan Terms: The loan is interest-only, maturing on October 8, 2032, and bears interest at a floating rate of three-month Term SOFR + 5.75%, with a 3.50% SOFR floor.
• Future Availability: Up to an additional $500 million in loans and $500 million in royalty financing payments remain available under the agreements, subject to achieving future milestones.