Why Billionaire Stanley Druckenmiller and Wall Street Analysts Love This Biotech Stock
The company is on the verge of becoming a commercial-stage biotech, with two promising therapies in phase 3 trials.
Overview
Shares of biotechnology company Revolution Medicines (NASDAQ: RVMD) have surged more than 134% so far this year. Billionaire investor Stanley Druckenmiller's Duquesne Family Office drew attention to the stock by buying 316,000 shares of Revolution in the first quarter. The move has paid off for Druckenmiller, as the stock is up more than 105% since his purchase.
Revolution is a clinical-stage company that focuses on targeted therapies against RAS proteins to replace traditional chemotherapy in treating aggressive malignancies, including non-small cell lung cancer, pancreatic cancer, and colorectal cancer. The scientific community had regarded RAS proteins as undruggable because potential therapeutic agents struggled to bind their surfaces. However, Revolution successfully created druggable sites through its tricomplex inhibitor platform, thereby blocking cancer cell signaling.
Druckenmiller isn't the only wealthy investor high on the stock, as BlackRock and Vanguard own significant shares of Revolution. Here are three likely reasons why.
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Originally published at www.fool.com.