07:51 AM EDT, 06/24/2025 (MT Newswires) -- Revolution Medicines ( RVMD ) said Tuesday it has entered into a $2 billion funding agreement with Royalty Pharma ( RPRX ) , consisting of up to $1.25 billion in synthetic royalty funding and $750 million in debt.

The 15-year royalty deal is linked to future sales of daraxonrasib and allows Revolution Medicines ( RVMD ) to retain "full strategic and executional control" of its RAS(ON) inhibitor pipeline, the company said.

It consists of five $250 million tranches, with the first received by Revolution Medicines ( RVMD ) at closing, the second to be released upon a positive readout of a phase 3 study, and the remaining three tranches are optional, milestone based and will be released after approval by the US Food and Drug Administration, the company said.

The $750 million debt facility is split into three $250 million tranches, tied to the commercialization of daraxonrasib, Revolution Medicines ( RVMD ) said. The first is accessible after FDA approval. The loan carries interest-only payments with principal due by Dec. 31, 2032, or six years after the first tranche is funded, according to the company.

Revolution Medicines ( RVMD ) said it is removing its cash runway end date guidance following the agreement.