Erasca double downgraded to Underperform at BofA

As previously reported, BofA double downgraded Erasca (ERAS) to Underperform from Buy with a price target of $1, down from $4, as the firm sees “an increasingly high bar to clear” to prove clinical differentiation in the ever-growing molecular glue landscape for solid tumors for lead molecular glue drugs ERAS-0015 and ERAS-4001. The firm also sees “a huge amount of spend and time required” to evaluate combination options and earlier lines of therapy, which are likely to be the largest value unlock for both drugs, the analyst added. In addition, the firm views it as unlikely that Erasca’s melanoma drug naporafenib finds a partner.