Revolution Medicines (RVMD) could see strong long-term growth from Rasonque sales, expansion into earlier treatment, and new drugs and combination therapies pending upcoming trial results, Morgan Stanley said in a note Thursday.

Morgan Stanley models about $12 billion in peak risk-adjusted sales across the company's drug portfolio by 2036, with potential sales of about $18 billion before adjusting for development risks, according to the note.

The analysts see Rasonque as the company's main commercial base, while zoldonrasib, elironrasib and earlier-stage drugs could provide additional sources of growth and reduce reliance on one treatment, while combination treatments could become an important long-term driver by helping the company reach patients earlier in treatment and expand into more cancer types.

The next 12 to 18 months will include the US launch of Rasonque, updates in colorectal cancer, progress from early-stage drugs and several late-stage studies, though weaker drug uptake or disappointing trial results remain key risks, the investment firm said.

Morgan Stanley started coverage of Revolution Medicines with an overweight rating and a $255 price target.

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