Erasca up 66% after WSJ report on AbbVie interest in Revolution Medicines

Shares of Erasca (ERAS) are up $2.40, or 66%, to $6.03 after The Wall Street Journal reported that AbbVie (ABBV) is in advanced talks to buy cancer-drug maker Revolution Medicines (RVMD). In a note this morning, Piper Sandler initiated coverage of Erasca with an Overweight rating and $5 price target, stating that the company is advancing a “potentially differentiated” RAS-targeted pipeline including a pan-RAS molecular glue and a pan- KRAS inhibitor. The firm says preclinical data suggests the potential for superior RAS inhibition and anti-tumor activity than Revolution Medicines’ daraxonrasib.