Erasca (ERAS) AI Stock Analysis

• Market Cap: $419.83M
• Dividend Yield: N/A
• Average Volume (3M): 788.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.17
• Revenue Growth: N/A
• EPS Growth: 50.77%
• Country: US
• Employees: 103
• Sector: Healthcare
• Sector Strength: 51
• Industry: Biotechnology
• EPS (TTM): -0.12
• Shares Outstanding: 283,670,140
• 10 Day Avg. Volume: 923,420
• 30 Day Avg. Volume: 788,287
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.26
• Enterprise Value/Revenue: 25.89
• Enterprise Value/Gross Profit: 222.13
• Enterprise Value/Ebitda: -0.75
• 1Y Price Target: $3.25
• Price Target Upside: 101.86% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 34 Underperform
• Price Target: ―

Erasca faces significant financial challenges with no revenue and ongoing losses, which heavily impact its stock score. The technical analysis suggests a potential bearish trend, while the valuation is weak due to persistent losses. These factors collectively indicate a high-risk investment, typical for early-stage biotech firms.

Positive Factors

Clinical Pipeline Advancement

Erasca advanced two key RAS-targeting programs into first-in-human studies, marking an important step for the company’s clinical pipeline.

Scientific Merit

There is encouragement from the scientific merit and clinical potential for both ERAS-0015 and ERAS-4001 programs.

Strategic Partnerships

Erasca is pursuing partnership opportunities for naporafenib, a strategic decision expected to enhance its development and commercialization efforts.

Negative Factors

Clinical Development Delays

Initial clinical data for ERAS-0015 and ERAS-4001 is not expected until 2026, delaying clarity on their clinical profiles and registrational path opportunity.

Competitive Landscape

Erasca faces an increasingly competitive market for molecular glue assets, leading to a reduction in peak market share expectations for its key assets.

Market Positioning

Analyst downgrades ERAS to Underperform from Buy due to challenges in proving clinical differentiation in the growing molecular glue landscape for solid tumors.

Erasca Business Overview & Revenue Model

Company Description

Erasca, Inc., a clinical-stage biopharmaceutical company, focuses on discovering, developing, and commercializing therapies for patients with RAS/MAPK pathway-driven cancers. The company's lead candidates include ERAS-007, an oral inhibitor of ERK1/2 for the treatment of non-small cell lung cancer, colorectal cancer, and acute myeloid leukemia; and ERAS-601, an oral SHP2 inhibitor for patients with advanced or metastatic solid tumors. It is also developing ERAS-801, a central nervous system-penetrant EGFR inhibitor for the treatment of patients with recurrent glioblastoma multiforme. The company was incorporated in 2018 and is headquartered in San Diego, California.

How the Company Makes Money

Erasca makes money primarily through partnerships and collaborations with other pharmaceutical and biotechnology companies, focusing on the development and commercialization of its drug candidates. As a clinical-stage company, Erasca is not yet generating revenue from product sales, but it may receive milestone payments, research funding, and potential royalties from strategic alliances. The company also relies on equity financing and public offerings to fund its operations and R&D activities.

Erasca Financial Statement Overview

Summary

Erasca's financial statements reflect significant financial distress typical of early-stage biotechnology companies. With no revenue, persistent losses, and negative cash flows, the company's dependence on external financing is clear. While the cash position provides some short-term relief, the sustainability and path to profitability remain uncertain.

Income Statement

Erasca's income statement reveals a challenging financial position with no revenue generation over the past several years. The company faces consistent negative EBIT and net income, indicating persistent operational losses. The lack of revenue growth and profitability is a significant concern.

Balance Sheet

The balance sheet shows a relatively strong cash position compared to its liabilities, but the company has consistently negative stockholders' equity due to accumulated losses. The debt-to-equity ratio is not meaningful given the negative equity, and the equity ratio highlights the company's reliance on liabilities to finance assets.

Cash Flow

Operating cash flows are consistently negative, reflecting ongoing cash burn. Although the company has managed to secure financing, the free cash flow remains negative, indicating challenges in achieving cash flow sustainability. The cash burn rate poses a risk to long-term solvency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.20M	0.00	0.00	0.00	0.00	0.00
Gross Profit	489.00K	-3.81M	-3.73M	-2.64M	-829.00K	-540.00K
EBITDA	-145.03M	-157.84M	-121.31M	-240.16M	-121.94M	-101.12M
Net Income	-128.27M	-161.65M	-125.04M	-242.81M	-122.76M	-101.66M
Balance Sheet
Total Assets	445.39M	502.53M	395.30M	514.91M	501.42M	124.83M
Cash, Cash Equivalents and Short-Term Investments	300.66M	298.31M	312.35M	435.62M	414.48M	118.70M
Total Debt	49.42M	51.89M	55.86M	55.10M	18.79M	2.99M
Total Liabilities	73.13M	79.03M	78.61M	103.06M	44.89M	238.81M
Stockholders Equity	372.26M	423.50M	316.69M	411.85M	456.53M	-113.98M
Cash Flow
Free Cash Flow	-99.19M	-109.48M	-102.99M	-119.81M	-98.48M	-71.38M
Operating Cash Flow	-99.07M	-109.42M	-101.22M	-103.26M	-79.60M	-32.69M
Investing Cash Flow	-29.97M	-156.62M	-91.22M	-71.08M	-64.59M	-71.20M
Financing Cash Flow	22.38M	240.70M	1.29M	98.08M	439.40M	139.99M

Erasca Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ERAS, the sentiment is Positive. The current price of 1.61 is above the 20-day moving average (MA) of 1.55, above the 50-day MA of 1.51, and below the 200-day MA of 1.71, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 54.94 is Neutral, neither overbought nor oversold. The STOCH value of 53.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ERAS.

Erasca Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STOK	68 Neutral	$1.08B	23.23	18.17%	―	1218.82%	―
ETON	66 Neutral	$479.23M	―	-22.06%	―	85.40%	40.95%
Sector *	51 Neutral	$7.92B	-0.43	-41.67%	2.21%	22.29%	-1.85%
CKPT	45 Neutral		―		―	-60.19%	56.60%
ORIC	43 Neutral	$1.05B	―	-43.82%	―	―	-7.33%
ERAS	34 Underperform	$419.83M	―	-31.16%	―	―	50.77%
SANA	33 Underperform	$770.93M	―	-109.12%	―	―	7.58%

Erasca Corporate Events

Erasca Highlights Strategic Focus at Healthcare Conference

Erasca, Inc. has updated its corporate presentation to include recent business and strategic developments, which will be showcased at the J.P. Morgan Healthcare Conference. The company plans to use its website for future updates and has emphasized its strategic focus on disrupting the RAS/MAPK pathway. This announcement highlights Erasca’s commitment to cancer therapy innovation and reflects its strategic efforts to maintain a strong position in the biotechnology industry.