Commodore Capital LP Invests $51.37 Million in Erasca, Inc. $ERAS

Key Points

• Commodore Capital acquired 3.175 million Erasca shares worth approximately $51.4 million, representing about 1.02% of the company and 3% of the fund’s portfolio. Institutional investors collectively own 67.78% of Erasca.
• Erasca reported quarterly EPS of -$0.60, missing the consensus estimate of -$0.12. Analysts nonetheless maintain a “Moderate Buy” consensus, with an average price target of $21.64 versus a recent share price of $19.11.
• Investor sentiment remains exposed to securities litigation alleging that Erasca misled investors about its lead oncology candidate’s competitive position, safety profile and intellectual-property protection.

Commodore Capital LP acquired a new stake in Erasca, Inc. (NASDAQ:ERAS - Free Report) during the first quarter, according to its most recent Form 13F filing with the SEC. The fund acquired 3,175,000 shares of the company's stock, valued at approximately $51,372,000. Erasca accounts for 3.0% of Commodore Capital LP's investment portfolio, making the stock its 14th biggest holding. Commodore Capital LP owned about 1.02% of Erasca as of its most recent filing with the SEC.

Several other large investors have also added to or reduced their stakes in the business. Neuberger Berman Group LLC increased its holdings in Erasca by 11.3% in the fourth quarter. Neuberger Berman Group LLC now owns 12,358 shares of the company's stock worth $46,000 after purchasing an additional 1,253 shares in the last quarter. Abel Hall LLC boosted its holdings in shares of Erasca by 8.1% during the 1st quarter. Abel Hall LLC now owns 16,947 shares of the company's stock worth $274,000 after buying an additional 1,265 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. grew its position in shares of Erasca by 25.7% during the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 13,787 shares of the company's stock worth $51,000 after buying an additional 2,820 shares during the period. ProShare Advisors LLC grew its position in shares of Erasca by 11.1% during the 4th quarter. ProShare Advisors LLC now owns 44,216 shares of the company's stock worth $164,000 after buying an additional 4,430 shares during the period. Finally, KBC Group NV bought a new stake in shares of Erasca in the 1st quarter valued at $81,000. Institutional investors and hedge funds own 67.78% of the company's stock.

Erasca Price Performance

Shares of Erasca stock opened at $19.11 on Monday. The company has a market cap of $5.94 billion, a PE ratio of -20.55 and a beta of 0.66. Erasca, Inc. has a 52 week low of $1.33 and a 52 week high of $24.28. The business has a 50 day moving average price of $15.44 and a 200-day moving average price of $13.99.

Erasca (NASDAQ:ERAS - Get Free Report) last announced its earnings results on Monday, May 11th. The company reported ($0.60) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.12) by ($0.48). As a group, research analysts anticipate that Erasca, Inc. will post -0.54 EPS for the current year.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on ERAS. Mizuho cut their target price on shares of Erasca from $28.00 to $26.00 and set an "outperform" rating on the stock in a research note on Tuesday, May 12th. HC Wainwright reiterated a "buy" rating on shares of Erasca in a report on Tuesday, July 14th. Wolfe Research set a $16.00 price objective on shares of Erasca in a research report on Thursday, June 4th. Bank of America raised their target price on Erasca from $16.00 to $18.00 and gave the company a "neutral" rating in a research note on Tuesday, July 14th. Finally, HSBC set a $20.00 price target on Erasca in a report on Tuesday, July 14th. Eight research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $21.64.

Key Stories Impacting Erasca

Here are the key news stories impacting Erasca this week:

• Neutral Sentiment: Several firms, including Rosen, Kaplan Fox, Faruqi & Faruqi, and others, reiterated the upcoming lead-plaintiff deadline in the Erasca class-action case, keeping investor attention focused on the lawsuit and potential damages. Article
• Neutral Sentiment: Bronstein, Gewirtz & Grossman, Pomerantz, Glancy Prongay, Schall, and other firms also publicized the pending securities-fraud action, underscoring that the litigation remains active and could weigh on sentiment. Article
• Negative Sentiment: The lawsuit alleges Erasca and certain executives misled investors about the competitive position, safety profile, and intellectual-property protection of its lead oncology candidate, ERAS-0015, which could increase legal risk and pressure the stock. Article

About Erasca

Erasca, Inc is a clinical‐stage biopharmaceutical company dedicated to the discovery and development of precision medicines for patients with cancer. The company focuses on small molecule therapeutics that target critical signaling pathways involved in tumor growth and survival, with a primary emphasis on inhibitors of the MAPK pathway. Erasca's approach is designed to deliver oral, targeted therapies that address both oncogene‐driven and immuno‐oncology indications, aiming to improve outcomes for patients with unmet medical needs.

Erasca's pipeline comprises multiple development candidates, including small molecule inhibitors engineered to disrupt key nodes in cancer cell signaling.

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