Erasca Q1 2024 Business Updates and Financial Results

Erasca, Inc., a clinical-stage precision oncology firm focused on RAS/MAPK pathway-driven cancers, has reported significant business updates and financial results for the fiscal quarter ending March 31, 2024. The company highlighted notable progress, particularly in its investigation of naporafenib plus trametinib for NRAS-mutant melanoma, revealing promising survival data and securing substantial financing.

In early 2024, Erasca announced compelling survival data from a pooled analysis of mature data for the combination of naporafenib and trametinib in patients with NRAS-mutant melanoma. The analysis showed a median overall survival (mOS) of 13 to 14 months, nearly doubling compared to historical controls. This positive clinical outcome catalyzed an oversubscribed $45 million financing round from new and existing healthcare-focused investors, which closed in April 2024. Jonathan E. Lim, M.D., Erasca's chairman, CEO, and co-founder, emphasized the potential of this combination therapy to significantly improve both progression-free survival and overall survival for patients with aggressive melanoma.

Throughout 2024, Erasca expects several data readouts across its clinical programs, including naporafenib (SEACRAFT-1), ERAS-007 (HERKULES-3), and ERAS-801 (THUNDERBBOLT-1). The company plans to initiate the pivotal SEACRAFT-2 trial evaluating naporafenib in the second quarter, with a Phase 3 trial readout anticipated in 2025. The recent capital infusion has extended Erasca's financial runway into the second half of 2026, ensuring continued operations through multiple key inflection points.

Key research and development highlights include a detailed analysis of median overall survival data for naporafenib in combination with trametinib. In March 2024, mature data from Phase 1b and Phase 2 trials showed mOS of 13.0 and 14.1 months, respectively. Erasca also hosted a conference call to update on its lead clinical programs, including naporafenib and the preclinical ERAS-4 program targeting KRAS-mutant solid tumors.

On the corporate front, in March 2024, Erasca secured a $45 million private placement financing, which bolstered its cash runway into the latter half of 2026. In February 2024, Erasca announced two clinical trial collaboration and supply agreements (CTCSAs) with Novartis. Under these agreements, Novartis will provide trametinib at no cost for Erasca's SEACRAFT-1 and SEACRAFT-2 trials, which evaluate naporafenib combined with trametinib for treating patients with RAS Q61X solid tumors and previously treated NRAS-mutant unresectable or metastatic melanoma, respectively.

Upcoming milestones for Erasca include initial Phase 1b data for the SEACRAFT-1 trial expected between the second and fourth quarters of 2024, and the initiation of the SEACRAFT-2 Phase 3 trial in the second quarter of 2024. Additionally, Phase 1b data for ERAS-007 in the HERKULES-3 trial and initial Phase 1 monotherapy data for ERAS-801 in the THUNDERBBOLT-1 trial are expected in 2024.

Financially, Erasca reported cash, cash equivalents, and marketable securities totaling $297.7 million as of March 31, 2024, compared to $322.0 million at the end of 2023. Factoring in the net proceeds from the recent private placement, the company's pro forma cash position is $334 million. Research and development expenses for the first quarter of 2024 were $28.6 million, a slight increase from $27.6 million in the same period of 2023. General and administrative expenses rose to $10.3 million from $9.4 million, driven by higher legal fees and personnel costs. The net loss for the quarter was $35.0 million, or $(0.23) per share, compared to a net loss of $33.2 million, or $(0.22) per share, in the first quarter of 2023.

Erasca, committed to erasing cancer, continues to focus on advancing its precision oncology pipeline, especially therapies targeting the RAS/MAPK pathway. The company leverages its deep expertise and collaborations to push forward its mission of developing novel treatments for cancer patients.