Revolution Medicines, Inc. Goodwill & Intangibles Disclosure
7. Intangible assets and goodwill
Intangible assets, net
Intangible assets, net consist of the following as of December 31, 2025:
|
|
Gross value |
|
|
Accumulated |
|
|
Net book |
|
|
Weighted- |
|
||||
|
|
(in thousands) |
|
|
(in years) |
|
||||||||||
In-process research and development — RAS Programs |
|
$ |
55,800 |
|
|
$ |
— |
|
|
$ |
55,800 |
|
|
n/a |
|
|
Developed technology — tri-complex platform |
|
|
7,480 |
|
|
|
(7,480 |
) |
|
|
— |
|
|
|
|
|
Total |
|
$ |
63,280 |
|
|
$ |
(7,480 |
) |
|
$ |
55,800 |
|
|
|
|
|
Amortization expense was $0.9 million for the year ended December 31, 2025 and $1.1 million for each of the years ended December 31, 2024 and 2023, respectively. The tri-complex platform was fully amortized as of December 31, 2025.
Intangible assets, net consist of the following as of December 31, 2024:
|
|
Gross value |
|
|
Accumulated |
|
|
Net book |
|
|
Weighted- |
|
||||
|
|
(in thousands) |
|
|
(in years) |
|
||||||||||
In-process research and development — RAS Programs |
|
$ |
55,800 |
|
|
$ |
— |
|
|
$ |
55,800 |
|
|
n/a |
|
|
Developed technology — tri-complex platform |
|
|
7,480 |
|
|
|
(6,610 |
) |
|
|
870 |
|
|
|
0.9 |
|
Total |
|
$ |
63,280 |
|
|
$ |
(6,610 |
) |
|
$ |
56,670 |
|
|
|
|
|
Goodwill
There was no change in the carrying value of goodwill for the year ended December 31, 2025 as compared to the value for the year ended December 31, 2024.
No impairment has been recognized as of December 31, 2025. Goodwill recorded is not deductible for income tax purposes.
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.