Erasca Reports First Quarter 2022 Financial Results and Business Updates
Presented compelling preclinical data at 2022 AACR Annual Meeting supporting clinical development of potentially best-in-class programs
Initial Phase 1b monotherapy data for ERAS-007 and Phase 1 monotherapy data for ERAS-601 expected in H2 2022; IND filing for ERAS-3490 on track for H2 2022
Strong balance sheet with cash of $422 million expected to fund operations into H2 2024
SAN DIEGO, May 12, 2022 (GLOBE NEWSWIRE) -- Erasca, Inc. (Nasdaq: ERAS), a clinical-stage precision oncology company singularly focused on discovering, developing, and commercializing therapies for patients with RAS/MAPK pathway-driven cancers, today reported financial results for the fiscal quarter ended March 31, 2022, and provided business updates.
“This quarter, we continued to advance our pipeline well. In addition to progressing our ERK1/2 inhibitor ERAS-007 and our SHP2 inhibitor ERAS-601 in their respective clinical trials, we also achieved first patient dosing for our CNS-penetrant EGFR inhibitor ERAS-801,” said Jonathan E. Lim, M.D., Erasca’s chairman, CEO, and co-founder. “We presented preclinical data in six posters at this year’s AACR meeting supporting the clinical development of our potentially best-in-class programs, including ERAS-007, ERAS-601, and ERAS-3490 (CNS-penetrant KRAS G12C inhibitor). We were delighted to host a webinar with Dr. Scott Kopetz from MD Anderson Cancer Center discussing the unmet need and therapeutic opportunities targeting cancers driven by the RAS/MAPK pathway, with a particular focus in gastrointestinal cancers.”
Dr. Lim continued, “We remain on track to report Phase 1b monotherapy data for ERAS-007 in HERKULES-1 and Phase 1 monotherapy data for ERAS-601 in FLAGSHP-1 in the second half of 2022. These data will include preliminary monotherapy safety and pharmacokinetics to support dose selection for combinations of ERAS-007 and ERAS-601. We also remain on track to file an IND for ERAS-3490 in the second half of 2022. As we look ahead, our pipeline continues to demonstrate encouraging therapeutic potential, our cash position remains strong, and we are highly focused on continued execution throughout the year.”
Research and Development Highlights
Key Upcoming Milestones
First Quarter 2022 Financial Results
Research and Development (R&D) Expenses: R&D expenses were $27.4 million for the quarter ended March 31, 2022, compared to $12.2 million for the quarter ended March 31, 2021. The increase was primarily driven by expenses incurred in connection with clinical trials, preclinical studies, and discovery activities, personnel costs due to increased headcount to support increased development activities, stock-based compensation expense, and outsourced service and consulting fees. Erasca also recorded $2.0 and $3.7 million of in-process R&D expense during the quarters ended March 31, 2022 and 2021, respectively, for upfront and milestone payments and stock issuances under certain of our acquisition and license agreements.
General and Administrative (G&A) Expenses: G&A expenses were $7.1 million for the quarter ended March 31, 2022, compared to $3.7 million for the quarter ended March 31, 2021. The increase was primarily driven by stock-based compensation expense, insurance costs, personnel costs, and facilities and related costs.
Net Loss: For the quarter ended March 31, 2022, Erasca reported a net loss of $36.5 million, or $(0.31) per basic and diluted share, compared to a net loss of $18.0 million, or $(0.81) per basic and diluted share, for the quarter ended March 31, 2021.
Cautionary Note Regarding Forward-Looking Statements
|March 31,||December 31,||2022||2021||Balance Sheet Data:||Cash, cash equivalents, and marketable securities||$||421,757||$||459,245||Working capital||381,983||393,636||Total assets||475,469||501,415||Accumulated deficit||(274,624||)||(238,166||)||Total stockholders’ equity||424,662||456,528|
Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except share and per share amounts)
|Three Months Ended March 31,|
|Research and development||$||27,429||$||12,245|
|In-process research and development||2,000||3,680|
|General and administrative||7,076||3,682|
|Total operating expenses||36,505||19,607|
|Loss from operations||(36,505||)||(19,607||)|
|Other income (expense)|
|Change in fair value of preferred stock purchase right liability||—||1,615|
|Total other income (expense), net||47||1,590|
|Net loss per share, basic and diluted||$||(0.31||)||$||(0.81||)|
|Weighted-average shares of common stock used in computing net loss per share, basic and diluted||119,491,433||22,233,422|
|Other comprehensive income (loss):|
|Unrealized loss on marketable securities, net||(789||)||(1||)|
LifeSci Advisors, LLC
Source: Erasca, Inc.