Merck & Co. is in discussions to acquire U.S.-based oncology biotech Revolution Medicines in a deal that could value the company between USD 28 billion and USD 32 billion, according to people familiar with the matter.

While talks are ongoing and no final agreement has been reached, the potential transaction would rank among the largest pharmaceutical deals in recent years. The discussions are said to be at an advanced stage, although there is no certainty that they will result in a completed acquisition.

Revolution Medicines focuses on developing targeted cancer therapies, particularly treatments aimed at cancers driven by RAS gene mutations, an area long considered challenging in oncology drug development. The company’s lead asset, daraxonrasib, is a late-stage investigational therapy that has attracted significant interest for its potential across multiple cancer indications.

The acquisition would support Merck’s strategy to strengthen and diversify its oncology pipeline as it prepares for future patent expirations of its blockbuster immunotherapy Keytruda, which currently accounts for a substantial share of the company’s revenues.

Market observers note that Merck has been actively seeking external assets to reinforce long-term growth, particularly in cancer, where competitive intensity continues to rise. A deal for Revolution Medicines would provide Merck with promising next-generation oncology assets and extend its leadership in the space.

Although Merck is viewed as the leading suitor, other large pharmaceutical companies are also believed to have shown interest in Revolution Medicines, raising the possibility of competing bids if negotiations progress further.

If finalised, the transaction would underscore the renewed momentum in large-scale biotech acquisitions, as global drugmakers deploy capital to secure innovative pipelines and address looming revenue gaps.