Erasca (ERAS) stock price is $14.61, up 7.31% on the day, as of Oct 20, 2026. It has a market cap of $4.55Bn, and is classified in the Biotechnology industry (Healthcare sector).
Enterprise Value
Margins
P/FCF
Key Stats
Market Cap4.55 Bn
P/E-15.85
P/S291.99
Div. Yield0.00
Revenue Growth (1y) (Qtr)-16.79
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About
Erasca, Inc. is a clinical stage precision oncology company dedicated to discovering developing and commercializing therapies for patients with RAS MAPK pathway driven cancers. The company focuses on the RAS gene and its downstream signaling cascade which are among the most frequently altered molecular drivers in human malignancies. Erasca was co founded by leaders in precision oncology and RAS targeting to build a pipeline that aims to shut down the pathway through multiple…
Erasca, Inc. is a clinical stage precision oncology company dedicated to discovering developing and commercializing therapies for patients with RAS MAPK pathway driven cancers. The company focuses on the RAS gene and its downstream signaling cascade which are among the most frequently altered molecular drivers in human malignancies. Erasca was co founded by leaders in precision oncology and RAS targeting to build a pipeline that aims to shut down the pathway through multiple complementary approaches. Its modality agnostic strategy allows the use of small molecule therapeutics large molecule antibodies or other formats as best suited to each target. The firm currently advances two clinical stage programs ERAS 0015 a pan RAS molecular glue and ERAS 4001 a pan KRAS inhibitor together with an earlier stage EGFR D2 D3 biparatopic antibody candidate ERAS 12. By targeting upstream downstream nodes RAS directly and emergent escape routes Erasca seeks to provide robust inhibition of oncogenic signaling and prolong survival in patient populations with high unmet medical need. Its research efforts are supported by a team of experienced drug discoverers developers and company builders who share a commitment to translating scientific insights into potential medicines.
Erasca generates revenue primarily from licensing agreements milestone payments and potential future product sales. The company has entered into exclusive worldwide licenses with third party owners of intellectual property such as Guangzhou Joyo Pharmatech for ERAS 0015 and Medshine Discovery for ERAS 4001 receiving upfront cash payments and committing to pay development regulatory and commercial milestones plus low to mid single digit royalties on net sales. In addition Erasca acquired EGFR antibody assets from Emerge Life Sciences through an asset purchase agreement that involved an upfront payment and issuance of shares. While the firm has not yet commercialized any therapeutic product it anticipates future revenue from the sale of approved drugs targeting RAS MAPK alterations. Collaborative arrangements such as the clinical trial supply agreement with Tango Therapeutics also provide potential revenue streams through cost sharing and co development incentives. The company also expects to receive funding from government and non profit organizations that support early stage oncology research although such inflows are not a core component of its revenue model. Until a product receives marketing approval the company relies on these partnership based inflows to fund its research and development activities.
Erasca occupies a niche within the broader oncology sector as a specialist in RAS MAPK pathway targeted therapeutics. The field includes large established players such as Amgen Roche Genentech and Bristol Myers Squibb that have approved inhibitors against individual nodes like KRAS G12C MEK and EGFR. Erasca differentiates itself through a modality agnostic pipeline that seeks to simultaneously hit multiple nodes and cooperative mechanisms reducing the likelihood of resistance. Its scientific advisory board comprises world renowned experts in RAS signaling including pioneers from academic institutions and industry who guide target selection and experimental design. The company’s intellectual property portfolio consists of dozens of pending and issued patents covering its molecular glue small molecule and antibody programs providing a foundation for exclusivity. By focusing exclusively on the RAS MAPK cascade Erasca aims to address more than five million new patients diagnosed each year with alterations in this pathway many of whom lack effective treatment options. While many competitors focus on single agent inhibition of a specific mutation Erasca’s approach combines multiple modalities to attack the pathway from several angles which may improve durability of response.
Erasca serves patients with RAS MAPK driven solid tumors who are enrolled in its clinical trials or who may receive its future approved therapies. The company works with hospitals cancer centers and research institutions that host its Phase 1 studies such as AURORAS 1 BOREALIS 1 and the China based JYP0015M101 trial. Licensing partners including Joyo Medshine and ELS act as collaborators providing early stage assets and sharing development costs. Erasca also engages with contract research organizations clinical trial sites and data management firms to support its study execution and regulatory submissions. Although no product is currently sold commercially the firm anticipates that its eventual customers will include oncologists hospitals health systems and payers in the United States Europe and other regions where it seeks regulatory approval. The company also interacts with patient advocacy organizations that provide insights into unmet needs and help shape clinical trial design.
Sector:HealthcareSector rationaleErasca is a clinical-stage biotechnology company focused on discovering and developing precision oncology therapies, specifically targeting the RAS MAPK pathway. Its core business involves developing pharmaceutical candidates like ERAS 0015 and ERAS 4001, with a revenue model based on licensing agreements, milestone payments, and future drug sales.Industries:BiotechnologyBiotechnologyPrimaryErasca is a clinical-stage biotechnology company developing therapies derived from biological science, specifically mentioning a biparatopic antibody candidate (ERAS 12) and a modality agnostic strategy including large molecule antibodies. Its revenue model currently relies on licensing agreements, milestone payments, and collaborations typical of biotech developers.PharmaceuticalsPharmaceuticalsSecondaryIn addition to biologics, the company develops small molecule therapeutics, including the pan RAS molecular glue (ERAS 0015) and the pan KRAS inhibitor (ERAS 4001), which fall under branded pharmaceutical development.Classified using BQ-MICSCIK: 0001761918
Bull & bear
Investment Thesis
▲ Bull case
Erasca's lead candidate ERAS-0015 demonstrated clinically meaningful efficacy in early trials, achieving a 62% tumor response rate in heavily pretreated lung cancer patients and a 40% response rate in pancreatic cancer patients, significantly outperforming the benchmark responses of 38% and 29% respectively seen with Revolution Medicines' daraxonrasib in comparable studies, suggesting the drug retains strong biological activity and therapeutic potential despite the ongoing IP dispute, with efficacy data remaining unchallenged by competitors or regulators even as legal scrutiny intensifies around comparative marketing claims and patent validity.
The market's negative reaction to the patient safety event appears disproportionate given the contextual details provided: the fatal pneumonitis case occurred in a 66-year-old pancreatic cancer patient with complex comorbidities including pulmonary tumors and a history of prior lung procedures, and analysts from J.P. Morgan, H.C. Wainwright, and Clear Street characterized the incident as a likely isolated, one-off case unrelated to drug mechanism, with the CEO noting that continued supportive care might have altered the outcome, indicating the safety signal may not reflect an intrinsic drug risk but rather patient-specific vulnerabilities in an advanced cancer population.
Erasca maintains a defensible intellectual property position through its in-licensed Joyo patent family, which includes an issued U.S. patent, a pending U.S. non-provisional application, an issued foreign patent, and thirteen pending foreign applications—assets that were disclosed as recently as March 12, 2026, and whose validity has not been adjudicated; the legal challenge from RevMed centers on allegations of trade secret misappropriation and improper data comparison rather than direct invalidation of Erasca's owned or licensed IP, leaving room for a negotiated settlement or legal defense that preserves core ownership of ERAS-0015's underlying innovations.
The company's pipeline extends beyond ERAS-0015, with ongoing development of additional RAS-targeted therapeutics and combination strategies that could diversify revenue streams and reduce reliance on any single asset, particularly relevant given the high unmet need in RAS-mutant solid tumors—including pancreatic, lung, and colorectal cancers—where current standards of care remain limited and Erasca's molecular glue approach offers a novel mechanism to target historically undruggable mutations.
Despite the recent share price collapse, Erasca's valuation now reflects a severe discount to peer biotech companies with comparable clinical-stage oncology assets, creating a potential asymmetric upside opportunity if the IP dispute is resolved favorably or if subsequent clinical data confirms ERAS-0015's efficacy and safety profile, especially considering that analysts like Rama at J.P. Morgan and Miller at Evercore ISI have explicitly called the share decline "materially overdone" based on the strength of preliminary clinical results and the isolated nature of the safety event.
Erasca's lead candidate ERAS-0015 demonstrated clinically meaningful efficacy in early trials, achieving a 62% tumor response rate in heavily pretreated lung cancer patients and a 40% response rate in pancreatic cancer patients, significantly outperforming the benchmark responses of 38% and 29% respectively seen with Revolution Medicines' daraxonrasib in comparable studies, suggesting the drug retains strong biological activity and therapeutic potential despite the ongoing IP dispute, with efficacy data remaining unchallenged by competitors or regulators even as legal scrutiny intensifies around comparative marketing claims and patent validity.
The market's negative reaction to the patient safety event appears disproportionate given the contextual details provided: the fatal pneumonitis case occurred in a 66-year-old pancreatic cancer patient with complex comorbidities including pulmonary tumors and a history of prior lung procedures, and analysts from J.P. Morgan, H.C. Wainwright, and Clear Street characterized the incident as a likely isolated, one-off case unrelated to drug mechanism, with the CEO noting that continued supportive care might have altered the outcome, indicating the safety signal may not reflect an intrinsic drug risk but rather patient-specific vulnerabilities in an advanced cancer population.
Erasca maintains a defensible intellectual property position through its in-licensed Joyo patent family, which includes an issued U.S. patent, a pending U.S. non-provisional application, an issued foreign patent, and thirteen pending foreign applications—assets that were disclosed as recently as March 12, 2026, and whose validity has not been adjudicated; the legal challenge from RevMed centers on allegations of trade secret misappropriation and improper data comparison rather than direct invalidation of Erasca's owned or licensed IP, leaving room for a negotiated settlement or legal defense that preserves core ownership of ERAS-0015's underlying innovations.
The company's pipeline extends beyond ERAS-0015, with ongoing development of additional RAS-targeted therapeutics and combination strategies that could diversify revenue streams and reduce reliance on any single asset, particularly relevant given the high unmet need in RAS-mutant solid tumors—including pancreatic, lung, and colorectal cancers—where current standards of care remain limited and Erasca's molecular glue approach offers a novel mechanism to target historically undruggable mutations.
Despite the recent share price collapse, Erasca's valuation now reflects a severe discount to peer biotech companies with comparable clinical-stage oncology assets, creating a potential asymmetric upside opportunity if the IP dispute is resolved favorably or if subsequent clinical data confirms ERAS-0015's efficacy and safety profile, especially considering that analysts like Rama at J.P. Morgan and Miller at Evercore ISI have explicitly called the share decline "materially overdone" based on the strength of preliminary clinical results and the isolated nature of the safety event.
Erasca faces an existential threat to its lead asset ERAS-0015 from Revolution Medicines' legal challenge, which alleges that the company misappropriated trade secrets, infringed on RevMed's patents through false equivalence claims between ERAS-0015 40mg and RMC-6236 400mg doses, and improperly compared preclinical data in public disclosures—accusations that, if substantiated, could force Erasca to halt all U.S. development and commercialization of ERAS-0015, destroy its claimed differentiators, and expose it to damages, injunctions, and irreparable reputational harm in a fiercely competitive oncology landscape.
The company's intellectual property assurances, particularly the March 12, 2026 statement highlighting the Joyo-licensed patent family, now appear critically vulnerable as RevMed's counsel directly contests the validity and ownership of the underlying IP, suggesting that Erasca may have overstated the strength and exclusivity of its patent position; without defensible IP, ERAS-0015 lacks a sustainable moat, making it susceptible to rapid circumvention by competitors and undermining the fundamental premise of its valuation as a novel, protected therapeutic.
Erasca's history of making bold comparative claims—such as asserting substantial equivalence between a 40mg dose of ERAS-0015 and a 400mg dose of RMC-6236—raises concerns about the rigor and transparency of its scientific communications, potentially indicating a pattern of overstatement to inflate perceived differentiation, which could extend beyond IP to efficacy or safety data interpretation and erode trust with regulators, investigators, and investors amid heightened scrutiny following the patient death and legal dispute.
The fatal pneumonitis event in the ERAS-0015 trial, while characterized by some analysts as isolated, introduces unacceptable safety uncertainty in a drug targeting chronically ill cancer patients; the fact that the patient withdrew care after steroid treatment and died, combined with the CEO's admission that continued support might have changed the outcome, suggests possible gaps in safety monitoring or patient management protocols, and raises the specter of dose-limiting toxicities that could impede clinical development even if efficacy remains promising.
With over $2.8 billion in market value erased in a single day and ongoing investigations by Hagens Berman into potential investor misrepresentation, Erasca now confronts a crisis of credibility where restoring investor confidence will require not only legal victories but also transparent, independently validated data—yet the company has delayed full trial results and remains dependent on early-stage readouts, leaving it vulnerable to further negative surprises as enrollment continues and long-term safety profiles emerge in a sector where safety issues are frequently magnified by market sentiment.
Erasca faces an existential threat to its lead asset ERAS-0015 from Revolution Medicines' legal challenge, which alleges that the company misappropriated trade secrets, infringed on RevMed's patents through false equivalence claims between ERAS-0015 40mg and RMC-6236 400mg doses, and improperly compared preclinical data in public disclosures—accusations that, if substantiated, could force Erasca to halt all U.S. development and commercialization of ERAS-0015, destroy its claimed differentiators, and expose it to damages, injunctions, and irreparable reputational harm in a fiercely competitive oncology landscape.
The company's intellectual property assurances, particularly the March 12, 2026 statement highlighting the Joyo-licensed patent family, now appear critically vulnerable as RevMed's counsel directly contests the validity and ownership of the underlying IP, suggesting that Erasca may have overstated the strength and exclusivity of its patent position; without defensible IP, ERAS-0015 lacks a sustainable moat, making it susceptible to rapid circumvention by competitors and undermining the fundamental premise of its valuation as a novel, protected therapeutic.
Erasca's history of making bold comparative claims—such as asserting substantial equivalence between a 40mg dose of ERAS-0015 and a 400mg dose of RMC-6236—raises concerns about the rigor and transparency of its scientific communications, potentially indicating a pattern of overstatement to inflate perceived differentiation, which could extend beyond IP to efficacy or safety data interpretation and erode trust with regulators, investigators, and investors amid heightened scrutiny following the patient death and legal dispute.
The fatal pneumonitis event in the ERAS-0015 trial, while characterized by some analysts as isolated, introduces unacceptable safety uncertainty in a drug targeting chronically ill cancer patients; the fact that the patient withdrew care after steroid treatment and died, combined with the CEO's admission that continued support might have changed the outcome, suggests possible gaps in safety monitoring or patient management protocols, and raises the specter of dose-limiting toxicities that could impede clinical development even if efficacy remains promising.
With over $2.8 billion in market value erased in a single day and ongoing investigations by Hagens Berman into potential investor misrepresentation, Erasca now confronts a crisis of credibility where restoring investor confidence will require not only legal victories but also transparent, independently validated data—yet the company has delayed full trial results and remains dependent on early-stage readouts, leaving it vulnerable to further negative surprises as enrollment continues and long-term safety profiles emerge in a sector where safety issues are frequently magnified by market sentiment.