Revolution Medicines Surpasses Amgen with Breakthrough Cancer Therapy Approval
Investors have two options when it comes to healthcare stocks: Amgen (AMGN) and Revolution Medicines (RVMD). Both companies have their own unique financial profiles and clinical potential. Amgen is a well-established biotech company with a deep portfolio of marketed drugs, while Revolution Medicines is focused on breakthrough cancer research without any current revenue.
Amgen's financial profile shows strong growth, with revenue reaching nearly $36.7 billion in FY 2025, representing an increase of approximately 9.9% over the previous year. The company also has a significant net income of around $7.7 billion, with a net margin of 21%. However, Amgen carries a high debt-to-equity ratio of roughly 6.3x and faces risks such as pricing pressures from government and commercial entities.
Revolution Medicines, on the other hand, has no approved products for sale and relies on strategic collaborations for development. The company reported revenue of $0.0 in FY 2025 due to its lack of commercial sales, resulting in a net loss of around $1.1 billion. However, Revolution Medicines' balance sheet shows a very low debt-to-equity ratio of approximately 0.1x and a high current ratio of roughly 9.5x.
The author of the article recommends choosing Revolution Medicines due to its potential for medical breakthroughs. The company's Daraxonrasib therapy has been approved for metastatic pancreatic cancer, cutting the risk of death by more than half, marking a paradigm shift in oncology. While Amgen is a dependable dividend-paying biotech with multiple brands growing at a double-digit rate, Revolution Medicines offers a stronger bet for long-term investors comfortable with biotech risk.