Erasca shares surge on pancreatic cancer trial data as $632 million capital raise looms
Shares climbed 8.94 per cent to $19.50 following phase 1 data showing 57 per cent tumour shrinkage, while Jefferies and HC Wainwright reaffirm buy ratings ahead of the July 15 closing of the new equity issuance.
Erasca Inc shares rose 8.94 per cent to close at $19.50 on Tuesday, driven by positive phase 1 clinical trial results for its treatment candidate ERAS-0015. The drug demonstrated a 57 per cent tumour shrinkage rate in patients with pancreatic cancer after eight weeks of treatment, bolstering investor confidence in the company’s ability to address difficult-to-treat RAS-mutant solid tumours.
The phase 1 data included seven enrolled patients, most of whom remained on treatment, suggesting a favourable safety profile for the candidate. Additionally, ERAS-0015 showed encouraging early results when combined with panitumumab, an approved colorectal cancer drug. Further data from this combination therapy is targeted for release in the first half of 2027.
Following the trial results, investment firm Jefferies raised its price target for Erasca by 14 per cent to $24 from $21, reiterating a buy recommendation. Jefferies noted that the stock remains underappreciated and that its current valuation does not fully reflect the efficacy and potentially cleaner safety profile of ERAS-0015 compared to rival investigational drugs. HC Wainwright also maintained a buy recommendation with a $20 price target.
Institutional interest in the biotech firm has increased, with 51 hedge funds holding positions in the first quarter of 2026, up from 32 in the prior quarter. This uptick suggests investors are positioning ahead of key clinical milestones, including plans to advance the pancreatic cancer study into phase 3 trials next year and initiate a lung cancer trial in the first half of 2027.
To fund further research and development, Erasca is planning a follow-on offering to raise up to $632 million. The company will offer more than 31.4 million new common shares at $17.50 apiece, with an additional overallotment option for 4.7 million shares. The offering is expected to close on July 15, subject to customary closing conditions, with net proceeds allocated to product development and working capital.
