Erasca spring clean leaves no room for internal assets
License out/inASCO
Erasca is undertaking some housekeeping, with a pipeline refresh that brings in two external preclinical programmes and deprioritises a number of existing assets, whilst also trimming its workforce by 18%. In addition the company priced a $160-million equity offering.
“We believe that further focusing our resources will allow us to advance the programmes with the highest probability of success and largest potential for patient impact,” remarked CEO Jonathan Lim.
While analysts were broadly positive on the pipeline additions, those at Mizhuo Securities said they have “come away a bit mixed on the totality of the…surprise updates.” Meanwhile, Morgan Stanley analysts noted that since going public in 2021, when it raised $345 million to fund its RAS/MAPK portfolio, Erasca’s “entire pipeline has…been replaced by externally-sourced assets.”
Joyo, Medshine drugs
Erasca in-licensed the pan-RAS molecular glue ERAS-0015 from Joyo Pharmatech for an upfront cash payment of $12.5 million, with the latter eligible for further milestones of up to $176.5 million plus a low- to mid-single digit percentage sales royalty. Erasca initially has rights in all countries excluding China, Hong Kong and Macau, although this can be converted to a global licence for a one-time payment.
It also in-licensed the pan-KRAS inhibitor ERAS-4001 from Medshine Discovery for an upfront cash payment of $10 million, with the latter eligible for up to $160 million in additional milestones, as well as a low-single digit percentage sales royalties. “Based on the compelling preclinical data generated to date, we believe both molecules have the potential to demonstrate best-in-class profiles within their respective categories of RAS inhibition,” Lim noted.
To make room for the new assets, Erasca plans to discontinue its internal pan-KRAS programme, dubbed ERAS-4, while also stopping work on the ERK inhibitorERK inhibitor ERAS-007. According to the company, data from the HERKULES-3 trial – investigating ERAS-007 in combination with Erbitux (cetuximab) and Braftovi (encorafenib) in certain patients with BRAF-mutated colorectal cancer – “do not support continued evaluation.”
Erasca is also pulling back on its CNS-penetrant EGFR inhibitorEGFR inhibitor ERAS-801 in recurrent glioblastoma, although it will explore options to advance the programme via investigator-sponsored trials. As a result of the reprioritisation, the company is cutting employees across drug discovery functions.
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