Erasca(ERAS) - 2025 Q2 - Quarterly Results

Erasca Reports Second Quarter 2025 Business Updates and Financial Results Erasca advanced its RAS-targeting oncology franchise with two IND clearances and maintains a strong financial position into H2 2028 Q2 2025 Business and Financial Highlights Erasca achieved clinical entry for two RAS-targeting candidates and secured its financial runway into the second half of 2028 - Efficient execution accelerated clinical entry of pan-RAS molecular glue ERAS-0015 and pan-KRAS inhibitor ERAS-4001[1] - Phase 1 monotherapy data for RAS-targeting franchise (ERAS-0015 and ERAS-4001) expected in 2026[1][2] - Robust balance sheet with $387 million in cash, cash equivalents, and marketable securities as of June 30, 2025, expected to fund operations into H2 2028[1][2] Research and Development (R&D) Highlights Erasca made significant R&D advancements, including IND clearances and promising preclinical data for its RAS-targeting pipeline Recent R&D Achievements Erasca achieved significant R&D milestones in Q2 2025, including IND clearances for two key drug candidates and presentation of encouraging preclinical data for its RAS-targeting franchise - IND cleared for ERAS-4001 (pan-KRAS inhibitor) in June 2025 for KRAS-mutant solid tumors, now being evaluated in the BOREALIS-1 Phase 1 trial[5] - IND cleared for ERAS-0015 (pan-RAS molecular glue) in May 2025 for RAS-mutant solid tumors, now being evaluated in the AURORAS-1 Phase 1 trial[5] - Presented new preclinical data reinforcing potential best-in-class profiles of Erasca's RAS-targeting franchise at the 2025 American Association for Cancer Research (AACR) Annual Meeting in April 2025[5] Key Upcoming Milestones The company anticipates delivering initial Phase 1 monotherapy data for its lead RAS-targeting candidates, ERAS-0015 and ERAS-4001, in 2026 - Initial Phase 1 monotherapy data for ERAS-0015 (pan-RAS molecular glue) from the AURORAS-1 trial expected in 2026[5] - Initial Phase 1 monotherapy data for ERAS-4001 (pan-KRAS inhibitor) from the BOREALIS-1 trial expected in 2026[5] Second Quarter 2025 Financial Results Erasca reported a reduced net loss in Q2 2025, driven by lower R&D and G&A expenses, while maintaining a strong cash position Financial Results Summary Erasca's Q2 2025 net loss decreased significantly due to lower R&D and G&A expenses, with cash runway extending into H2 2028 Key Financials for Three Months Ended June 30 (in thousands) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------------- | :------ | :------ | :----------- | | Research and Development Expenses | $21,170 | $33,032 | -35.9% | | In-process Research and Development | $7,500 | $22,500 | -66.7% | | General and Administrative Expenses | $9,455 | $12,250 | -22.8% | | Net Loss | $(33,876) | $(63,201) | -46.4% | | Net Loss per Share (basic and diluted) | $(0.12) | $(0.29) | -58.6% | - Cash, cash equivalents, and marketable securities were $386.7 million as of June 30, 2025, compared to $440.5 million as of December 31, 2024. This balance is expected to fund operations into the second half of 2028[6] - Decrease in R&D expenses was primarily driven by an impairment charge in Q2 2024, and decreases in personnel costs, outsourced services, clinical trial expenses, preclinical studies, and facilities-related expenses[7] - Decrease in G&A expenses was primarily driven by an impairment charge in Q2 2024, and a decrease in legal fees[8] Selected Condensed Consolidated Balance Sheet Data The balance sheet reflects a decrease in cash and total assets, alongside an increased accumulated deficit, impacting equity Balance Sheet Overview The balance sheet shows decreased cash and total assets from December 2024 to June 2025, with working capital slightly increasing, while the accumulated deficit grew, reducing total stockholders' equity Selected Condensed Consolidated Balance Sheet Data (in thousands) | Balance Sheet Data | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Cash, cash equivalents, and marketable securities | $386,749 | $440,473 | | Working capital | $282,509 | $277,398 | | Total assets | $445,386 | $502,526 | | Accumulated deficit | $(832,505) | $(767,663) | | Total stockholders' equity | $372,258 | $423,499 | Condensed Consolidated Statements of Operations and Comprehensive Loss Statements of operations show reduced operating expenses and net loss for Q2 and H1 2025, primarily from lower R&D and G&A Statements of Operations Overview Erasca's statements of operations show a significant reduction in operating expenses and net loss for both the three and six months ended June 30, 2025, compared to the same periods in 2024, primarily due to lower R&D and G&A costs Condensed Consolidated Statements of Operations and Comprehensive Loss (in thousands, except per share amounts) | Operating Expenses | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Research and development | $21,170 | $33,032 | $47,139 | $61,606 | | In-process research and development | $7,500 | $22,500 | $7,500 | $22,500 | | General and administrative | $9,455 | $12,250 | $19,116 | $22,527 | | Total operating expenses | $38,125 | $67,782 | $73,755 | $106,633 | | Loss from operations | $(38,125) | $(67,782) | $(73,755) | $(106,633) | | Interest income | $4,330 | $5,041 | $9,070 | $8,941 | | Other expense, net | $(81) | $(460) | $(157) | $(526) | | Total other income (expense), net | $4,249 | $4,581 | $8,913 | $8,415 | | Net loss | $(33,876) | $(63,201) | $(64,842) | $(98,218) | | Net loss per share, basic and diluted | $(0.12) | $(0.29) | $(0.23) | $(0.53) | | Weighted-average shares of common stock used in computing net loss per share, basic and diluted | 283,355,730 | 217,806,567 | 283,308,273 | 184,484,154 | | Unrealized (loss) gain on marketable securities, net | $(213) | $14 | $10 | $(273) | | Comprehensive loss | $(34,089) | $(63,187) | $(64,832) | $(98,491) | About Erasca Erasca is a clinical-stage precision oncology company focused on RAS/MAPK pathway-driven cancers Company Mission and Focus Erasca is a clinical-stage precision oncology company singularly focused on discovering, developing, and commercializing therapies for patients with RAS/MAPK pathway-driven cancers, aiming to 'erase cancer' through novel therapies and combination regimens - Erasca's mission is to 'erase cancer' by focusing on RAS/MAPK pathway-driven cancers[10] - The company develops novel therapies and combination regimens designed to comprehensively shut down the RAS/MAPK pathway[10] - Co-founded by leading pioneers in precision oncology and RAS targeting, guided by a scientific advisory board of world's leading experts[10] Cautionary Note Regarding Forward-Looking Statements This section outlines risks and uncertainties associated with forward-looking statements, emphasizing potential divergence from actual results Forward-Looking Statements and Risks This disclaimer highlights that forward-looking statements regarding future events, therapeutic benefits, clinical trial timings, and financial sufficiency are subject to inherent risks and uncertainties, potentially differing from actual results - Forward-looking statements include expectations regarding therapeutic benefits, planned advancement of the development pipeline, anticipated timing of data readouts, ability to advance differentiated approaches, and sufficiency of cash to fund operations[11] - Actual results may differ due to risks such as the novel and unproven approach of shutting down the RAS/MAPK pathway, preclinical/early clinical trial results not being predictive, potential delays in clinical trials, dependence on third parties, unexpected adverse side effects, and ability to obtain intellectual property protection[11][12] - Readers are cautioned not to place undue reliance on these statements, which speak only as of the date of the press release, and Erasca undertakes no obligation to update them[12] Contact Information Contact details for investor relations are provided for inquiries Investor Relations Contact Contact details for investor relations are provided for inquiries - Contact: Joyce Allaire, LifeSci Advisors, LLC, jallaire@lifesciadvisors.com[16]