Erasca sinks after Revolution Medicines alleges patent infringement

Erasca (ERAS) announced that it received a letter from legal counsel for Revolution Medicines (RVMD). In the letter Revolution alleged that Erasca’s asset ERAS-0015 is “substantially equivalent” to certain compositions claimed in its U.S. Patent No. 12,409,225 and that ERAS-0015 infringes the ‘225 Patent under the doctrine of equivalents. Revolution added that a third party misappropriated Revolution’s alleged trade secrets in connection with a patent relating to ERAS-0015, and that Erasca is allegedly liable under the trade secret laws as a licensee. Revolution also says Erasca has improperly compared preclinical data of ERAS-0015 and RMC-6236 in public disclosures. “RevMed demanded that, among other things, the Company immediately cease all making, using, offering for sale, selling, and importation of ERAS-0015 in the United States for any purpose not protected by the Hatch-Waxman safe harbor and cease making any deceptive and untrue comparative statements comparing ERAS-0015 and RMC-6236. The Company believes the assertions in the letter are without merit and intends to contest the allegations vigorously,” Erasca noted. Shares of Erasca are down 9% to $19.61 in early trading.