Core Insights - Erasca, Inc. has received IND clearance from the FDA for ERAS-4001, a potential first-in-class pan-KRAS inhibitor, and ERAS-0015, a pan-RAS molecular glue, ahead of company guidance [1][2] - Initial Phase 1 monotherapy data for both RAS-targeting programs is expected in 2026 [1] Company Overview - Erasca is a clinical-stage precision oncology company focused on therapies for RAS/MAPK pathway-driven cancers [5] - The company aims to develop novel therapies to comprehensively shut down the RAS/MAPK pathway [5] Product Details - **ERAS-4001**: - A selective pan-KRAS inhibitor targeting multiple KRAS mutations and wildtype KRAS, with no activity against HRAS or NRAS [4] - Demonstrated potent activity against both active and inactive states of KRAS with single-digit nanomolar IC50s [4] - Induced tumor regression in multiple KRASm models during preclinical studies [4] - **ERAS-0015**: - An oral pan-RAS molecular glue with significantly higher binding affinity and potency compared to existing treatments [3] - Designed to prevent resistance against mutant-selective inhibitors by inhibiting RAS wildtype variants [3] - Showed favorable pharmacokinetic properties in preclinical studies [3] Clinical Trials - The BOREALIS-1 Phase 1 trial will assess the safety, tolerability, pharmacokinetics, pharmacodynamics, and preliminary efficacy of ERAS-4001 in KRASm solid tumors [2] - ERAS-0015 is being evaluated in the AURORAS-1 Phase 1 trial for RAS-mutant solid tumors [2]

Company Overview - Erasca, Inc. is a clinical-stage precision oncology company focused on discovering, developing, and commercializing therapies for patients with RAS/MAPK pathway-driven cancers [2] - The company aims to "erase cancer" by creating novel therapies and combination regimens that comprehensively shut down the RAS/MAPK pathway [2] Upcoming Events - Management will participate in the Jefferies Global Healthcare Conference from June 3-5, 2025, with a fireside chat scheduled for June 4 at 5:30 pm Eastern Time [1] - The company will also attend the Goldman Sachs 46th Annual Global Healthcare Conference from June 9-11, 2025, with a fireside chat on June 10 at 2:40 pm Eastern Time [1] - Live audio webcasts of these events will be available on Erasca's website, with archived replays accessible for 30 days post-event [1]

Summary of Erasca (ERAS) 2025 Conference Call Company Overview - **Company**: Erasca (ERAS) - **Event**: Bank of America Health Care Conference, May 14, 2025 - **Speaker**: Jonathan Lim, Chairman, Co-founder, and CEO of Erasca Key Updates and Developments 1. **Clinical Advancements**: - IND clearance of ERAS15, a pan RAS molecular glue, and IND submission of ERAS4001, a pan KRAS small molecule inhibitor, both ahead of schedule [4][21] - ERAS15 is positioned as the lead program, entering Phase 1 dose escalation followed by expansion cohorts [5][21] 2. **Strategic Partnerships**: - Seeking a strategic partner for Naporafenib to enhance development, regulatory, and commercial efforts [4] 3. **Financial Position**: - Cash runway extended from H2 2027 to H2 2028, providing over three years of cash resources [5][22] - More than $400 million on the balance sheet to advance RAS programs [22] Pipeline Focus 1. **ERAS15**: - Potential best-in-class pan RAS molecular glue with strong preclinical activity and low dose requirements for tumor regression [7][8] - High oral bioavailability and expected IP exclusivity through February 2043 [8][9] 2. **ERAS4001**: - KRAS selective inhibitor with good preclinical activity and high oral bioavailability [9][19] - Targets KRAS G12X and G13D mutations effectively [16] 3. **Combination Therapies**: - Promising data on combination treatments with anti-PD-1, showing complete tumor eradication in preclinical models [14][19] Mechanism of Action - ERAS15 binds to cyclophylline A (CYP A) with 8 to 21 fold higher affinity compared to competitors, leading to more potent RAS inhibition [10][11] - Demonstrated superior tumor regression with lower doses compared to existing treatments [11][12] Clinical Development Plan - Focus on major tumor types: colorectal, non-small cell lung cancer, and pancreatic cancer, as well as other tumor types with KRAS mutations [20] - Key milestones include IND filing and Phase I monotherapy data expected in 2026 [21] Additional Insights - ERAS15 shows a favorable pharmacokinetic profile with lower clearance and longer half-life compared to competitors [15][19] - No observed QTc prolongation in cardiovascular studies, indicating a favorable safety profile [19] This summary encapsulates the critical updates and strategic direction of Erasca as discussed during the conference call, highlighting the company's focus on advancing its RAS-targeting therapies and maintaining a strong financial position for future growth.

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Erasca, Inc. reported a net loss of $31.0 million in Q1 2025, a decrease from $35.0 million in Q1 2024, maintaining $411.1 million in liquidity [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $471.2 million as of March 31, 2025, from $502.5 million at year-end 2024, while total liabilities and stockholders' equity also saw reductions Condensed Consolidated Balance Sheets (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $70,482 | $67,739 | | Short-term marketable securities | $234,103 | $230,570 | | Total current assets | $314,617 | $308,793 | | Long-term marketable securities | $106,492 | $142,164 | | **Total assets** | **$471,244** | **$502,526** | | **Liabilities and Stockholders' Equity** | | | | Total current liabilities | $25,471 | $31,395 | | **Total liabilities** | **$71,742** | **$79,027** | | **Total stockholders' equity** | **$399,502** | **$423,499** | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) The company reported a net loss of $31.0 million for Q1 2025, a reduction from $35.0 million in Q1 2024, primarily due to lower operating expenses Statements of Operations Highlights (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Research and development | $25,969 | $28,574 | | General and administrative | $9,661 | $10,277 | | **Total operating expenses** | **$35,630** | **$38,851** | | Loss from operations | ($35,630) | ($38,851) | | Interest income | $4,740 | $3,900 | | **Net loss** | **($30,966)** | **($35,017)** | | Net loss per share, basic and diluted | ($0.11) | ($0.23) | [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity decreased to $399.5 million by March 31, 2025, mainly due to the net loss, partially offset by stock-based compensation expense - The primary drivers of change in stockholders' equity for Q1 2025 were the **net loss of $30,966 thousand** and **stock-based compensation expense of $6,713 thousand**[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was $31.6 million in Q1 2025, offset by $34.3 million from investing activities, resulting in a net increase of $2.7 million in cash Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($31,555) | ($33,251) | | Net cash provided by investing activities | $34,265 | $9,971 | | Net cash provided by financing activities | $33 | $6,931 | | **Net increase (decrease) in cash** | **$2,743** | **($16,349)** | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the company's oncology focus, liquidity assessment, significant license agreements, stock option repricing, and sublease activities, operating as a single segment - The company is a clinical-stage precision oncology company focused on therapies for RAS/MAPK pathway-driven cancers. It believes its cash, cash equivalents, and marketable securities as of March 31, 2025, are sufficient to fund operations for at least one year[21](index=21&type=chunk)[23](index=23&type=chunk) - The company has multiple license agreements (Novartis, Joyo, Medshine, NiKang) and an asset acquisition (Asana) that require potential future milestone payments totaling **hundreds of millions of dollars**, contingent on development, regulatory, and sales achievements. As of March 31, 2025, no such milestone payments were accrued[55](index=55&type=chunk)[58](index=58&type=chunk)[67](index=67&type=chunk) - In May 2024, the company repriced **7,478,918 outstanding stock options** for eligible employees (excluding Section 16 officers and directors) to an exercise price of **$2.35 per share**. This resulted in **$1.1 million of incremental stock-based compensation cost**[72](index=72&type=chunk)[74](index=74&type=chunk) - The company has entered into multiple agreements to sublease portions of its corporate headquarters in San Diego. In June 2024, this led to a **noncash impairment charge of $4.7 million** related to the operating lease assets and property of the first floor[84](index=84&type=chunk)[86](index=86&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses its strategy for RAS/MAPK pathway-driven cancers, prioritizing the RAS-targeting franchise and evaluating alternatives for naporafenib, with a reduced Q1 2025 net loss and sufficient liquidity into H2 2028 - The company is singularly focused on discovering, developing, and commercializing therapies for patients with **RAS/MAPK pathway-driven cancers**[96](index=96&type=chunk) - In May 2025, a strategic review led to the decision to prioritize the **RAS-targeting franchise (ERAS-0015 and ERAS-4001)** and to evaluate strategic alternatives, including partnerships, for the Stage 2 portion of the naporafenib Phase 3 trial[108](index=108&type=chunk) - The company believes its cash, cash equivalents, and marketable securities of **$411.1 million** as of March 31, 2025, will be sufficient to fund operations into the **second half of 2028**[118](index=118&type=chunk)[145](index=145&type=chunk) R&D Expense Breakdown (in thousands) | Program | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | ERAS-0015 | $6,544 | $— | | Naporafenib | $10,597 | $12,970 | | Other clinical programs | $— | $7,047 | | Other discovery and preclinical programs | $8,828 | $8,557 | | **Total R&D Expenses** | **$25,969** | **$28,574** | [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As of March 31, 2025, the company reported no material changes to its market risk profile, including interest rate, foreign currency, and inflation risks, since its 2024 Annual Report - There have been no material changes surrounding the company's market risk from the discussion provided in its Annual Report on Form 10-K for the year ended December 31, 2024[160](index=160&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of March 31, 2025, the principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective at the reasonable assurance level[162](index=162&type=chunk) - There have been no changes in internal control over financial reporting during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[163](index=163&type=chunk) [PART II. OTHER INFORMATION](index=44&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any material legal proceedings, acknowledging the possibility of future claims in the ordinary course of business - The company is not currently a party to any material proceedings[165](index=165&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors were reported, except for a new risk concerning potential negative effects from changes to US tariff and import/export regulations - A new risk factor was added regarding potential negative effects from changes to United States tariff and import/export regulations, which could disrupt international trade and adversely affect the business[167](index=167&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities for the period covered by the report - None[168](index=168&type=chunk) [Defaults Upon Senior Securities](index=44&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to the company - Not applicable[169](index=169&type=chunk) [Mine Safety Disclosures](index=44&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[170](index=170&type=chunk) [Other Information](index=44&type=section&id=Item%205.%20Other%20Information) During Q1 2025, no officers or directors adopted, modified, or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements - During the three months ended March 31, 2025, no officers or directors adopted, materially modified or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement[171](index=171&type=chunk) [Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, CEO/CFO certifications, and Inline XBRL documents - The exhibits filed with the report include corporate governance documents, CEO/CFO certifications under Sarbanes-Oxley Sections 302 and 906, and interactive data files (XBRL)[174](index=174&type=chunk) [Signatures](index=46&type=section&id=Signatures)

[Business and R&D Highlights](index=1&type=section&id=Business%20and%20R%26D%20Highlights) Erasca advanced its RAS-targeting franchise with new INDs and extended its cash runway into H2 2028 via strategic partnerships - The company's strategic focus on its RAS-targeting franchise and the decision to pursue partnerships for naporafenib has extended its projected cash runway to the **second half of 2028**[2](index=2&type=chunk)[5](index=5&type=chunk) - The FDA cleared the Investigational New Drug (IND) application for ERAS-0015, a pan-RAS molecular glue, for patients with RAS-mutant solid tumors, with the AURORAS-1 Phase 1 trial evaluating its monotherapy[3](index=3&type=chunk) - An IND application was submitted to the FDA for ERAS-4001, a pan-KRAS inhibitor, for patients with KRAS-mutant solid tumors, with the planned BOREALIS-1 Phase 1 trial assessing its monotherapy[3](index=3&type=chunk) - New preclinical data presented at the 2025 AACR Annual Meeting reinforced the potential best-in-class profiles of the RAS-targeting franchise[3](index=3&type=chunk) [Key Upcoming Milestones](index=2&type=section&id=Key%20Upcoming%20Milestones) Erasca expects initial Phase 1 monotherapy data for ERAS-0015 and ERAS-4001 in **2026** - Initial Phase 1 monotherapy data for the AURORAS-1 trial (ERAS-0015) in patients with RASm solid tumors is expected in **2026**[10](index=10&type=chunk)[1](index=1&type=chunk) - Initial Phase 1 monotherapy data for the BOREALIS-1 trial (ERAS-4001) in patients with KRASm solid tumors is also expected in **2026**[10](index=10&type=chunk)[1](index=1&type=chunk) [First Quarter 2025 Financial Results](index=2&type=section&id=First%20Quarter%202025%20Financial%20Results) Erasca reported a **$411.1 million** cash position, reduced operating expenses, and a lower net loss for Q1 2025 Financial Highlights | Financial Metric | Q1 2025 ($ millions) | Q1 2024 ($ millions) | | :--- | :--- | :--- | | **Cash Position** | $411.1 | N/A | | **R&D Expenses** | $26.0 | $28.6 | | **G&A Expenses** | $9.7 | $10.3 | | **Net Loss** | $31.0 | $35.0 | | **Net Loss per Share** | $(0.11) | $(0.23) | - The company's cash, cash equivalents, and marketable securities decreased from **$440.5 million** at the end of 2024 to **$411.1 million** as of March 31, 2025[6](index=6&type=chunk) - The decrease in R&D expenses was primarily due to lower personnel costs, clinical trial expenses, and preclinical activities[7](index=7&type=chunk) - The decrease in G&A expenses was mainly driven by reduced legal fees and insurance costs[8](index=8&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) This section presents Erasca's unaudited condensed consolidated financial statements for Q1 2025 Selected Condensed Consolidated Balance Sheet Data | Balance Sheet Data (In thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash, cash equivalents, and marketable securities | $411,077 | $440,473 | | Working capital | $289,146 | $277,398 | | Total assets | $471,244 | $502,526 | | Accumulated deficit | $(798,629) | $(767,663) | | Total stockholders' equity | $399,502 | $423,499 | Condensed Consolidated Statements of Operations and Comprehensive Loss | (In thousands, except per share amounts) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Research and development | $25,969 | $28,574 | | General and administrative | $9,661 | $10,277 | | **Total operating expenses** | **$35,630** | **$38,851** | | Loss from operations | $(35,630) | $(38,851) | | Interest income | $4,740 | $3,900 | | **Net loss** | **$(30,966)** | **$(35,017)** | | Net loss per share, basic and diluted | $(0.11) | $(0.23) |

Core Insights - Erasca, Inc. is advancing its RAS-targeting franchise with the clearance of IND for ERAS-0015 and submission for ERAS-4001, with initial Phase 1 monotherapy data expected in 2026 [2][6][7] - The company reported a robust cash position of $411 million as of March 31, 2025, extending its cash runway guidance to the second half of 2028 [4][8] - The R&D expenses decreased to $26 million for Q1 2025, down from $28.6 million in Q1 2024, indicating improved cost management [9] RAS-Targeting Franchise - The RAS-targeting franchise includes two promising product candidates: ERAS-0015, a pan-RAS molecular glue, and ERAS-4001, a pan-KRAS inhibitor, both showing differentiated therapeutic potential in preclinical models [2][3] - The AURORAS-1 Phase 1 trial will evaluate ERAS-0015 in patients with RAS-mutant solid tumors, while the BOREALIS-1 Phase 1 trial will assess ERAS-4001 in patients with KRAS-mutant solid tumors [6][7] Financial Highlights - As of March 31, 2025, cash, cash equivalents, and marketable securities totaled $411.1 million, a decrease from $440.5 million at the end of 2024, but sufficient to fund operations into H2 2028 [8][16] - The net loss for Q1 2025 was $31 million, or $(0.11) per share, an improvement from a net loss of $35 million, or $(0.23) per share, in Q1 2024 [10][17] Strategic Decisions - The company has strategically decided to focus on its RAS-targeting franchise while exploring partnership opportunities for naporafenib, which has contributed to extending its cash runway [2][4]

Core Insights - Erasca, Inc. has received FDA clearance for the IND application of ERAS-0015, a pan-RAS molecular glue, and submitted an IND application for ERAS-4001, a pan-KRAS inhibitor, both ahead of schedule [1][2] - The company has extended its cash runway guidance from H2 2027 to H2 2028 by pursuing partnership opportunities for naporafenib [1][2] Company Developments - ERAS-0015 is positioned as a potential best-in-class therapy for RAS-mutant solid tumors, with Phase 1 monotherapy data expected in 2026 [4][5] - ERAS-4001 is anticipated to be a first-in-class pan-KRAS inhibitor, with initial Phase 1 data also expected in 2026 [4][6] - The strategic decision to seek partnerships for naporafenib allows the company to focus resources on its RAS-targeting franchise [2][4] Market Potential - Approximately 2.7 million patients are diagnosed annually worldwide with RAS-mutant tumors, and over 2.2 million with KRAS-mutant tumors, indicating a significant unmet medical need [4][8] - The development of naporafenib aims to address the high unmet medical need in NRAS-mutant melanoma, a disease with no approved targeted therapies [7][8] Clinical Pipeline - ERAS-0015 has shown superior binding affinity and potency in preclinical studies compared to existing therapies, with plans for evaluation in the AURORAS-1 Phase 1 trial [5][6] - ERAS-4001 demonstrated potent activity against KRAS mutations and is set to be evaluated in the BOREALIS-1 Phase 1 trial [6][8] Financial Position - The extension of cash runway guidance to H2 2028 provides the company with over three years of cash without new capital infusion, enhancing its ability to execute clinical development plans [2][4]

Core Viewpoint - Erasca, Inc. is actively participating in the Bank of America Securities 2025 Health Care Conference, highlighting its focus on precision oncology for RAS/MAPK pathway-driven cancers [1]. Company Overview - Erasca, Inc. is a clinical-stage precision oncology company dedicated to discovering, developing, and commercializing therapies specifically for patients with RAS/MAPK pathway-driven cancers [3]. - The company was co-founded by pioneers in precision oncology and RAS targeting, aiming to create novel therapies and combination regimens to effectively shut down the RAS/MAPK pathway [3]. - Erasca has developed one of the most comprehensive pipelines focused on the RAS/MAPK pathway in the industry, supported by a scientific advisory board of leading experts [3]. Event Participation - Management will present at the conference on May 14, 2025, at 2:35 pm Pacific Time and will engage in one-on-one investor meetings [1]. - A live audio webcast of the event will be available on Erasca's website, with an archived replay accessible for 30 days post-event [2].

Core Insights - Erasca, Inc. presented new preclinical data at the AACR Annual Meeting, highlighting the best-in-class potential of its RAS-targeting compounds ERAS-0015 and ERAS-4001, which show robust anti-tumor activity as both monotherapy and in combination therapy [1][2] Group 1: ERAS-0015 - ERAS-0015 is a pan-RAS molecular glue that demonstrated favorable pharmacokinetic properties, including longer residence time and greater tissue exposure, leading to robust anti-tumor activity at lower doses compared to leading competitors [3][5] - The compound forms a ternary complex with active state RAS and cyclophilin A (CypA), effectively blocking downstream effector complex formation and showing potent inhibition of proliferation across diverse tumor tissues and RAS mutations [5] Group 2: ERAS-4001 - ERAS-4001 is a pan-KRAS inhibitor that selectively targets both mutant and wildtype KRAS, potentially offering an expanded therapeutic index and addressing resistance mechanisms associated with mutant-selective KRAS inhibitors [4][6] - The compound exhibited significant tumor growth inhibition and anti-tumor efficacy in KRAS mutant xenograft models, with single-digit nanomolar IC50s observed in various cell lines [6][10] Group 3: SHOC2 Modulators - The company identified direct SHOC2 binders that inhibit the assembly of the SHOC2-MRAS-PP1C complex, representing a novel approach to attenuate RAS/MAPK pathway signaling [7][10] - These compounds are the first examples of direct modulators of the SMP complex, with ongoing optimization for potential protein-protein inhibitors and degrader modalities [10] Group 4: Company Overview - Erasca is a clinical-stage precision oncology company focused on developing therapies for RAS/MAPK pathway-driven cancers, with a strong pipeline and collaboration with leading experts in the field [8]

Erasca, Inc. ( ERAS ) is a developmental biotech operating almost entirely in the space of developing novel targeted therapies against the RAS/MAP kinase pathway in solid tumor oncology. Having fallen over 50% sinceI have my PhD in biochemistry and have worked for years analyzing clinical trials and biotech companies. It is my passion to educate everyone possible on the science behind the businesses that we invest in, and it's my mission to help you do your due diligence and not get burned by the pitfalls o ...