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Erasca (ERAS) Valuation Check After ERAS-0015 Patent Extension and New Chief Scientific Officer Appointment

Simply Wall St · 20h ago

Erasca (ERAS) just locked in U.S. patent protection through 2043 for its pan RAS candidate ERAS-0015 and elevated Robert Shoemaker to chief scientific officer, signaling a tighter focus on its RAS pipeline.

See our latest analysis for Erasca.

The move comes after a powerful run, with a 30 day share price return of 32.95 percent and a 90 day share price return of 105.39 percent. The 1 year total shareholder return of 30.42 percent contrasts with a still negative 3 year total shareholder return of 20.97 percent, suggesting momentum is rebuilding as investors reassess Erasca’s RAS pipeline and cash runway against past volatility.

If this kind of early stage biotech story interests you, it can be worth comparing Erasca with other specialized developers in oncology and beyond using healthcare stocks.

With shares still trading at roughly half of the average analyst target despite a fortified patent moat and substantial cash runway, is Erasca a mispriced RAS innovator, or has the market already fully accounted for its next phase of growth?

Price-to-Book of 2.8x: Is it justified?

On a price-to-book basis, Erasca trades at 2.8 times, which screens as modest value against peers yet only slightly above the wider US biotech group.

The price-to-book ratio compares the market value of the company to the net assets on its balance sheet, a common yardstick for pre-revenue, loss-making biotechs where earnings-based metrics are less meaningful.

In Erasca’s case, being described as good value versus a 3.4 times peer average suggests investors are not paying a premium for its asset base despite a deep RAS-focused pipeline and recent IP wins, yet the small premium to the 2.7 times broader industry average underlines that the stock is far from distressed territory.

The contrast between relative value against close peers and a slightly richer stance versus the broader biotech industry highlights how carefully the market is weighing Erasca’s science, cash and execution risk at current levels.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-book of 2.8x (ABOUT RIGHT)

However, investors still face notable risks, including potential trial setbacks across Erasca’s RAS/MAPK programs and future dilution if additional capital is needed.

Find out about the key risks to this Erasca narrative.

Build Your Own Erasca Narrative

If you see the numbers differently or prefer to dig into the details yourself, you can craft a personalized view in minutes. Get started with Do it your way.

A great starting point for your Erasca research is our analysis highlighting 4 important warning signs that could impact your investment decision.

Looking for your next smart move?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.