Revolution falls after deal with Royalty Pharma for its cancer drug

Shares of drug developer Revolution Medicines RVMD.O fall 2% to $39.23

Royalty Pharma RPRX.O says it will pay up to $2 billion for Revolution's experimental drug, daraxonrasib, for pancreatic and lung cancers

Under the deal, Royalty Pharma will provide up to $1.25 billion, including a $250 million upfront payment, in exchange for a synthetic royalty on annual worldwide net sales of daraxonrasib; it will also extend $750 million in secured debt to Revolution

"I suppose maybe some RMVD investors were hoping for an acquisition and they may suspect this Royalty Pharma deal lowers the probability of a RMVD acquisition" said Oppenheimer analyst, Jay Olson in a note

Including session's move, RVMD stock down 12% YTD