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EI

Erasca, Inc. (ERAS)·Q1 2024 Earnings Summary

Executive Summary

  • Q1 2024 focused on clinical progress and balance sheet strengthening: Erasca reported pooled median OS of 13.0–14.1 months for naporafenib + trametinib in NRAS-mutant melanoma and closed an oversubscribed $45M private placement, extending cash runway into H2 2026 .
  • EPS was -$0.23, with net loss of $35.0M; operating expenses rose modestly YoY driven by clinical and discovery activities .
  • Guidance refined: SEACRAFT-2 Phase 3 initiation in Q2 2024; multiple readouts expected across SEACRAFT-1, HERKULES-3, and THUNDERBBOLT-1 in 2024 .
  • Wall Street consensus (S&P Global) for Q1 2024 EPS and revenue was unavailable; comparisons to estimates could not be made (S&P Global data unavailable due to access error).

What Went Well and What Went Wrong

What Went Well

  • Pooled mOS analysis showed a near doubling versus historical controls for NRASm melanoma with naporafenib + trametinib (13.0 and 14.1 months), a potential efficacy signal supporting the planned Phase 3 design .
  • Balance sheet strengthened via an oversubscribed $45M private placement, extending the expected cash runway into the second half of 2026 .
  • Clear near-term catalysts and execution milestones set: SEACRAFT-2 Phase 3 initiation in Q2 2024 and randomized Stage 1 readout in 2025; multiple 2024 readouts across SEACRAFT-1, HERKULES-3, and THUNDERBBOLT-1 .

Management quotes:

  • “We started 2024 strong with compelling survival data… which showed a near doubling of median overall survival… These data also catalyzed an oversubscribed $45 million financing…” — Jonathan E. Lim, M.D., Chairman & CEO .
  • “We expect several data readouts… and expect to initiate our pivotal SEACRAFT-2 trial… With our recent capital infusion and robust balance sheet, we… extended our cash runway into the second half of 2026…” — Jonathan E. Lim, M.D. .

What Went Wrong

  • Operating expenses rose YoY: R&D increased to $28.6M (from $27.6M), and G&A to $10.3M (from $9.4M), reflecting higher clinical activity and personnel/legal costs .
  • Net loss widened to $35.0M vs $33.2M YoY, and EPS declined to -$0.23 vs -$0.22 YoY, highlighting ongoing investment ahead of pivotal trials .
  • No earnings call transcript available for Q1 2024; thus limited visibility into Q&A clarifications on trial designs, enrollment pace, and regulatory interactions [Search: no transcript; ListDocuments returned none].

Financial Results

P&L and EPS vs prior periods

MetricQ3 2023Q4 2023Q1 2024
R&D Expense ($USD Millions)$25.213 $24.805 $28.574
G&A Expense ($USD Millions)$9.445 $9.066 $10.277
Total Operating Expenses ($USD Millions)$34.658 $33.871 $38.851
Net Loss ($USD Millions)$30.361 $29.701 $35.017
EPS ($USD)-$0.20 -$0.20 -$0.23

Notes: Company did not report product revenue in these releases; statements of operations presented operating expenses and net loss without revenue line items .

Balance Sheet

MetricQ3 2023Q4 2023Q1 2024
Cash, Cash Equivalents & Marketable Securities ($USD Millions)$343.559 $321.992 $297.685
Working Capital ($USD Millions)$279.236 $294.520 $276.380
Total Assets ($USD Millions)$419.406 $395.297 $370.022
Total Stockholders’ Equity ($USD Millions)$338.975 $316.686 $288.409

Pro forma cash balance post-financing: $334M expected to fund operations into H2 2026 .

Estimates vs Actuals (Q1 2024)

MetricConsensusActual
EPS ($USD)Unavailable (S&P Global)*-$0.23
Revenue ($USD Millions)Unavailable (S&P Global)*Not reported

*Values retrieved from S&P Global — consensus unavailable due to access error.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash RunwayCorporateFund operations into H2 2025 Fund operations into H2 2026 (pro forma $334M) Raised (extended by ~1 year)
SEACRAFT-2 Initiation (Phase 3 naporafenib + trametinib, NRASm melanoma)2024Initiation in H1 2024 Initiation in Q2 2024 Refined (timing specified)
SEACRAFT-2 Stage 1 Readout2025Not specified priorRandomized readout from Stage 1 expected in 2025 New (added timing)
SEACRAFT-1 Initial Phase 1b Combo Data2024Between Q2–Q4 2024 Between Q2–Q4 2024 Maintained
HERKULES-3 (ERAS-007 + EC) Phase 1b Data2024First half of 2024 Second quarter of 2024 Refined (narrowed window)
THUNDERBBOLT-1 (ERAS-801) Initial Monotherapy Data20242024 2024 Maintained

Earnings Call Themes & Trends

Note: No Q1 2024 earnings call transcript found; themes derived from press releases and prior quarter disclosures.

TopicPrevious Mentions (Q3 2023, Q4 2023)Current Period (Q1 2024)Trend
Naporafenib clinical progressFirst patient dosed in SEACRAFT-1 (Phase 1b) SEACRAFT-2 initiation in Q2 2024; pooled mOS 13–14 months supports efficacy signal Accelerating toward pivotal
Novartis CTCSA for trametinibNot mentioned in Q3; announced in Feb 2024 (captured in Q4 release) Two CTCSAs in place, trametinib provided at no cost for SEACRAFT-1 & -2 Strengthened partnership
ERAS-007 (HERKULES-3)Encouraging activity; expansion data expected H2’23/H1’24 Phase 1b combination data expected Q2 2024 Near-term readout
ERAS-801 (THUNDERBBOLT-1)Dose escalation completed; FTD granted; expansion cohorts ongoing Initial Phase 1 monotherapy data expected 2024 Continuing progression
Financing & runwayStrong balance sheet; runway into H2 2025 $45M private placement; runway into H2 2026 (pro forma $334M) Improved liquidity
Regulatory clarityAlignment with US/EU authorities for SEACRAFT-2 Phase 3 design Phase 3 timing detailed; Stage 1 randomized readout in 2025 Advancing to pivotal

Management Commentary

  • “We are excited about the potential of [naporafenib + trametinib] to improve both progression free survival and overall survival in patients with aggressive melanoma…” — Jonathan E. Lim, M.D. .
  • “We expect to initiate our pivotal SEACRAFT-2 trial… with a randomized readout from Stage 1… in 2025.” — Jonathan E. Lim, M.D. .
  • “In 2023, our three clinical candidates reached important clinical and regulatory milestones… gaining regulatory clarity… demonstrating encouraging therapeutic potential for ERAS-007, and achieving Fast Track Designation… for each of naporafenib… and ERAS-801.” — Jonathan E. Lim, M.D. .

Q&A Highlights

  • No Q1 2024 earnings call transcript available; company had hosted an R&D update call on March 28, 2024 (from Q4 release), but no Q1 earnings Q&A transcript could be found via our document tools [ListDocuments returned none for Q1 transcript].

Estimates Context

  • S&P Global Wall Street consensus for Q1 2024 EPS and revenue was unavailable due to an access error; therefore, no beat/miss analysis vs consensus can be provided. Future comparisons should anchor on S&P Global once available.

Key Takeaways for Investors

  • Pooled mOS data (13–14 months) for naporafenib + trametinib in NRASm melanoma supports advancing into Phase 3; the efficacy signal is a meaningful catalyst ahead of SEACRAFT-2 initiation .
  • Financing de-risks near-term execution: $45M private placement and pro forma $334M cash extend runway into H2 2026 through multiple clinical readouts and the Phase 3 initiation .
  • 2024 is a data-rich year: SEACRAFT-1 initial combo data (Q2–Q4), HERKULES-3 Phase 1b combination data (Q2), and THUNDERBBOLT-1 initial monotherapy data (2024) can refine the ERAS-007 and ERAS-801 value propositions .
  • Operating expense growth reflects clinical trial execution; net loss and EPS modestly worsened YoY (-$35.0M, -$0.23), consistent with pre-commercial biotech development pacing .
  • Novartis collaboration (trametinib supply at no cost) supports efficient Phase 1b/Phase 3 development, lowering combination therapy costs and bolstering trial feasibility .
  • Regulatory clarity from 2023 and refined Phase 3 timing (Q2 initiation; 2025 Stage 1 readout) improve visibility on the registrational path for naporafenib .

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