Erasca, Inc. (ERAS): restructuring charge — Erasca signs Joyo/Medshine licenses for pan-RAS/KRAS; cuts 18% staff, deprioritizes ERAS-007

Erasca, Inc.

In-licensed pan-RAS inhibitor from Joyo for $12.5M upfront + up to $176.5M milestones; lead candidate ERAS-0015.
In-licensed pan-KRAS inhibitor from Medshine for $10M upfront + up to $160M milestones; lead candidate ERAS-4001.
Workforce reduction of ~18% primarily in drug discovery; estimated $2.2M charges in Q2 2024.
Discontinuing internal ERAS-4 pan-KRAS program; deprioritizing ERAS-007 due to insufficient efficacy data and ERAS-801.
Pipeline focus on naporafenib, ERAS-0015, and ERAS-4001.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

Erasca, Inc. entered into Medshine License Agreement with Medshine Discovery Inc. valued at $10.0 million (effective 2024-05-14).

Action: entry
Agreement: license
Counterparty: Medshine Discovery Inc.
Value: $10.0 million
Effective: 2024-05-14

Exact text from the filing

On May 14, 2024, the Company entered into an exclusive license agreement (the “Medshine License Agreement”) with Medshine Discovery Inc. (“Medshine”) under which the Company was granted an exclusive, worldwide, royalty-bearing license to certain patent and other intellectual property rights owned or controlled by Medshine to develop, manufacture and commercialize certain pan-KRAS inhibitors in all fields of use.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

Erasca, Inc. entered into Joyo License Agreement with Guangzhou Joyo Pharmatech Co., Ltd. valued at $12.5 million (effective 2024-05-14).

Action: entry
Agreement: license
Counterparty: Guangzhou Joyo Pharmatech Co., Ltd.
Value: $12.5 million
Effective: 2024-05-14

Exact text from the filing

On May 14, 2024, Erasca, Inc. (the “Company”) entered into an exclusive license agreement (the “Joyo License Agreement”) with Guangzhou Joyo Pharmatech Co., Ltd. (“Joyo”) under which the Company was granted an exclusive, worldwide (except mainland China, Hong Kong and Macau), royalty-bearing license to certain patent and other intellectual property rights owned or controlled by Joyo to develop, manufacture, and commercialize certain pan-RAS inhibitors in all fields of use.

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Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

Erasca, Inc. announced a restructuring with charges of approximately $2.2 million affecting drug discovery functions or on the deprioritized programs (by approximately 18%).

Type: restructuring
Charge: approximately $2.2 million
Affected area: drug discovery functions or on the deprioritized programs
Headcount: by approximately 18%

Exact text from the filing

by approximately 18%, primarily affecting employees working in drug discovery functions or on the deprioritized programs. The Company anticipates recognizing approximately $2.2 million in total charges in the second quarter of 2024 in connection with the reduction in force. These charges will consist primarily of one-time cash charges for termination benefits.

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Erasca, Inc. filing history →

Source: SEC EDGAR

accession 0001193125-24-140591

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