aibioErasca launches $500,000,000 stock offering, then prices 31,428,572 shares at $17.50
Tickers ERAS
Erasca's final terms are 31,428,572 shares at $17.50, a total of $550,000,010.00, above the $500,000,000 first announced. Its two clinical-stage programs are early, and the annual report shows a net loss of $124.5 million for 2025.
Key facts
- Company
- Erasca, Inc. (NASDAQ: ERAS)
- News type
- Financings
- Primary source
- Erasca, Inc. 424B5 (2026-07-13)
Erasca, Inc. said on July 13, 2026 that it intended to offer $500.0 million of common stock in an underwritten public offering, with a 30-day option for the underwriters to buy up to $75.0 million more. The announcement said there can be no assurance whether or when the offering would be completed, or as to its size or terms. The stock's last reported sale price on July 10, 2026 was $18.53 per share.
The final prospectus supplement sets the terms. Erasca is selling 31,428,572 shares at $17.50 per share, for a total public offering price of $550,000,010.00. Underwriting discounts and commissions are $1.05 per share, or $33,000,000.60 in total, leaving proceeds before expenses of $16.45 per share, or $517,000,009.40. The last reported sale price on July 13, 2026 was $17.90 per share, above the $17.50 offering price. The underwriters also have a 30-day option to buy up to 4,714,285 more shares, and they expected to deliver the shares on or about July 15, 2026.
Underwriters, counsel and registration
J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Jefferies LLC and Evercore Group L.L.C. are the joint book-running managers and representatives of the underwriters. The prospectus supplement says the underwriters are represented by Cooley LLP of San Diego, California. It names Latham & Watkins LLP as counsel that has rendered legal services to Erasca.
The offering is made under a shelf registration statement on Form S-3, Registration No. 333-297427, with a base prospectus dated July 13, 2026. The press release says that shelf was filed on July 13, 2026 and became automatically effective on filing. The supplement lists the stock on the Nasdaq Global Select Market under the symbol ERAS and says Erasca is an emerging growth company.
Use of proceeds
Erasca says it will use the net proceeds, together with its existing cash, cash equivalents and marketable securities, to fund research and development of its product candidates and other development programs. The company also lists working capital and general corporate purposes.
What the company is developing
Erasca calls itself a clinical-stage precision oncology company focused on RAS/MAPK pathway-driven cancers. Its annual report, filed March 12, 2026, says more than five million new patients a year are diagnosed globally with cancers driven by RAS/MAPK pathway alterations, and that most have limited or no targeted therapy options.
Its two clinical-stage programs are ERAS-0015, described as a pan-RAS molecular glue, and ERAS-4001, a pan-KRAS inhibitor. A third program, ERAS-12, is in discovery and is an EGFR D2/D3 biparatopic antibody. The company in-licensed its RAS-targeting franchise in May 2024. It licenses ERAS-0015 from Guangzhou Joyo Pharmatech Co., Ltd., and a separate trial of the molecule in China is sponsored by Joyo.
The annual report says the investigational new drug application for the first ERAS-0015 trial, AURORAS-1, was cleared by the FDA in May 2025. The company's supporting data for ERAS-0015 come from laboratory work and animal studies. In mice, a combination with an anti-PD-1 antibody eliminated tumors, and a combination with cetuximab produced significant tumor growth inhibition. The annual report's business section presents no human efficacy data for either program. It also says most compounds targeting discrete RAS/MAPK nodes face resistance and tolerability challenges.
Losses and cash
The annual report shows a net loss of $124.5 million for 2025, down from $161.7 million for 2024. Research and development expense was $92.9 million in 2025, against $115.4 million in 2024. Cash used in operations was $95.5 million in 2025 and $109.4 million in 2024.
At the end of 2024 the company held $67.7 million in cash and cash equivalents and $230.6 million in short-term investments. The new offering's total of $550,000,010.00 is larger than the $95.5 million the company used in operations in 2025, and the company reported net losses in both 2024 and 2025.
What the offering does not show
The annual report gives no human efficacy data for ERAS-0015 or ERAS-4001. The clinical language in the annual report describes trials and designs, not results, so the offering does not change the stage of the science.