Erasca cuts staff and projects to prioritize KRAS and molecular glues

Erasca has recently announced significant changes to its clinical pipeline, ceasing operations for three clinical programs and acquiring two cancer therapies from Joyo Pharmatech and Medshine Discovery. This reorganization also includes a substantial reduction in its workforce by 18%.

The company has strategically aligned with China-based Joyo Pharmatech, agreeing to an upfront payment of $12.5 million for global rights to a pan-RAS molecular glue therapy, ERAS-0015, excluding mainland China, Hong Kong, and Macau. Joyo Pharmatech stands to receive up to $176.5 million in milestone payments, in addition to royalties based on sales. Erasca retains the option to extend licensing rights to Joyo territories with a one-time payment, which must be made either before the first patient is dosed in a Phase II clinical trial or at the time of a New Drug Application (NDA) filing.

The ERAS-0015 therapy is targeted at treating solid tumors with Ras mutations, and a Phase I AURORAS-1 trial is scheduled to commence in 2026. The investigational new drug (IND) filing for this trial is anticipated in the first half of the following year. Molecular glue therapies, like ERAS-0015, are gaining attention for their potential in treating cancers and rare diseases, illustrated by high-value collaborations such as Novo Nordisk's $1.46 billion agreement with Neomorph to develop molecular glue degraders for various disorders.

In addition to the Joyo collaboration, Erasca has secured an exclusive worldwide license from Medshine Discovery to develop and commercialize a pan-KRAS inhibitor, ERAS-4001. For this agreement, Erasca will pay $10 million upfront and up to $160 million in milestone payments, along with sales royalties. The Phase I BOREALIS-1 trial for ERAS-4001, targeting KRAS mutated solid tumors, is expected to start in 2026, with an IND filing projected in the first quarter of the next year.

Erasca's internal pan-KRAS program, ERAS-4, will be discontinued, contingent on the inclusion of certain existing molecules as potential backup compounds for ERAS-4001 under the Medshine agreement. The decision to halt the ERAS-4 program reflects the company's strategic pivot to prioritize more promising therapies.

The two other clinical programs being terminated are ERAS-007 and ERAS-801. ERAS-007, an ERK inhibitor, failed to demonstrate sufficient efficacy in a Phase I/II trial, leading to its discontinuation. ERAS-801, an epidermal growth factor receptor (EGFR) inhibitor, will also be discontinued, although Erasca plans to explore advancing this therapy through investigator-sponsored trials.

Amid these changes, Erasca is also downsizing its workforce by approximately 18%. The company indicated that the majority of affected employees were involved in drug discovery and programs that have now been deprioritized.

Despite these cutbacks, Erasca remains committed to advancing its pan-RAF inhibitor, naporafenib. This candidate is currently undergoing evaluation in Phase I and III trials in combination with Novartis' mitogen-activated protein kinase (MEK) inhibitor trametinib.

The restructuring and strategic acquisitions reflect Erasca's efforts to streamline its focus and resources on the most promising areas of its pipeline, aiming to enhance its overall efficacy in bringing new cancer therapies to market.