Erasca Reports $161.65 Million Net Loss for 2024, Driven by Increased Operating Expenses

Erasca, Inc., a clinical-stage precision oncology company, reported a net loss of $161.65 million for the year ended December 31, 2024, compared to a net loss of $125.04 million in 2023. This increase in net loss is primarily attributable to a rise in operating expenses, particularly research and development costs, which increased by $11.5 million to $115.36 million, and the addition of $22.5 million in in-process research and development expenses related to new licensing agreements with Guangzhou Joyo Pharmatech Co., Ltd. and Medshine Discovery Inc. General and administrative expenses also rose by $4.0 million to $41.73 million. These increases were partially offset by a $1.5 million increase in other income, primarily due to higher interest income.

Significant changes in the company's operations during 2024 included the initiation of the SEACRAFT-2 pivotal Phase 3 trial for naporafenib, a pan-RAF inhibitor, in patients with NRAS-mutated melanoma. Preliminary data from the SEACRAFT-1 Phase 1b trial showed a 40% response rate in patients with NRAS Q61X melanoma. The company also in-licensed two preclinical programs, ERAS-0015 (a pan-RAS molecular glue) and ERAS-4001 (a pan-KRAS inhibitor), in May 2024. Furthermore, Erasca deprioritized several programs, including the HERKULES-3 and THUNDERBBOLT-1 clinical trials, and implemented a strategic reprioritization of resources towards naporafenib, ERAS-0015, and ERAS-4001. The company also reduced its workforce by approximately 18% in May 2024.

As of December 31, 2024, Erasca had 103 full-time employees, 33 of whom hold doctorate degrees. The company's cash, cash equivalents, and marketable securities totaled $440.5 million. The company raised a total of $1 billion since its inception in 2018 through various funding rounds, including an IPO, underwritten offerings, a private placement, and an ATM offering. The company anticipates that its current cash resources will be sufficient to fund operations into the second half of 2027.

Erasca's lead product candidate, naporafenib, received Fast Track Designation from the FDA in December 2023. The company expects to release randomized dose optimization data from Stage 1 of the SEACRAFT-2 trial in the second half of 2025. IND filings for ERAS-0015 and ERAS-4001 are planned for mid-Q2 2025 and the second quarter of 2025, respectively, with Phase 1 monotherapy data readouts anticipated in 2026 for both. The company intends to commercialize its products in the United States and explore partnerships in other geographies. The 10-K filing also details several license agreements with various entities, outlining milestone payments and royalty structures. The company's financial statements are included in the filing, showing detailed breakdowns of revenue, expenses, and cash flows.