Billionaire Stanley Druckenmiller Bought This Biotech Stock That Has Surged 400%. Is It Still a Buy?

Stanley Druckenmiller isn't afraid to take risks. His boldness has paid off through the years. Druckenmiller's net worth stands at $7.8 billion. His Duquesne Family Office has roughly $3 billion in assets under management.

One notable example of Druckenmiller's risk-taking is his investments in clinical-stage biotech stocks. In the first quarter of 2026, his Duquesne Family Office initiated a new stake in Revolution Medicines (NASDAQ: RVMD) worth $30.7 million at the end of Q1.

Over the last 12 months, Revolution Medicines has surged by more than 400%. Is this high-flying biotech stock still a buy?

Stanley Druckenmiller. Image source: Getty Images.

Investing in a revolution

There's a simple explanation why Druckenmiller likes Revolution Medicines -- and why the stock has performed so well. Revolution appears to have one of the most promising pancreatic cancer therapies ever developed in its pipeline.

Daraxonrasib targets the RAS protein, which has long been considered one of the most "undruggable" targets in cancer. Mutant versions of this protein become stuck in an "on" state and drive the unchecked spread of multiple types of tumors. Daraxonrasib works by blocking the cellular signals of RAS proteins.

In April 2026, Revolution Medicine reported stellar late-stage clinical data for daraxonrasib in patients with previously treated metastatic pancreatic cancer. The median overall survival rate for patients receiving the drug was 13.2 months -- nearly double the rate for patients receiving chemotherapy.

Revolution now awaits U.S. Food and Drug Administration (FDA) approval. The company is also pursuing European approval for daraxonrasib.

Is Revolution Medicines stock still a buy?

Druckenmiller didn't build a $30 million position in a company with no sales without doing his homework first. He knew the potential for Revolution Medicines and for daraxonrasib.

But Revolution's market cap now hovers around $40 billion. Significant growth expectations are clearly baked into the biotech innovator's share price.

Wall Street believes tremendous growth is in store, with consensus peak annual projections for daraxonrasib ranging from $5 billion to $7.6 billion. The low end of that range implies Revolution Medicines trades at eight times sales that have yet to materialize.

However, those projections are based only on daraxonrasib in treating pancreatic cancer. Revoluion is also evaluating the drug in late-stage clinical trials as a treatment for non-small cell lung cancer. Success in these studies could open up another big opportunity.

Revolution Medicines could still be appealing to aggressive long-term investors. My take, though, is that other growth stocks offer more compelling risk-reward profiles after Revolution's sizzling gains over the last year.

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.