On Monday, Goldman Sachs adjusted its outlook on Erasca Inc. (NASDAQ:ERAS), increasing its price target from $6.00 to $7.00 while maintaining a Buy rating. This revision follows Erasca's fourth quarter 2023 update, which included significant research and development progress and financial developments.
Elasca's update highlighted the company's Phase 3 trial program for its key late-stage clinical asset, naporafenib, and the completion of a $45 million private placement financing. This additional funding, combined with $322 million in cash on hand at the end of the fourth quarter, will extend Elasca's operational runway from the first half of 2026 to the second half of 2026.
A retrospective pooled analysis of phase 1b/2 data on the combination of naporafenib and trametinib in patients with NRAS-mutant melanoma demonstrated a median overall survival of approximately 13 to 14 months. This result, based on Erasca's benchmarks, strengthens confidence in the regimen's potential success in the upcoming Phase 3 SEACRAFT study.
The company reaffirmed its timeline for key program milestones. First patient dosing of SEACRAFT-1 is expected between Q2 and Q4 of 2024, with initial data from HERKULES-3 for encorafenib and cetuximab combination therapy for BRAFmut colorectal cancer expected in 2024 It is scheduled for the first half of the year. First dose escalation data for the EGFR inhibitor ERAS-801 in the THUNDERBOLT-1 study in patients with recurrent glioblastoma multiforme are expected in 2024.
Additionally, pivotal phase 3 SEACRAFT-2 trial data on the combination of naporafenib and trametinib in NRAS-mutant melanoma are expected in 2025.
Management is actively seeking ways to advance the advancement of ERAS-4 (pan-KRAS), citing preclinical data that suggests potential advantages over competing assets. The updated financial model primarily reflects changes in operating expenses. The new $7 price target takes into account increased cash balances and extended cash runway.
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