ERAS Stock Slumps Against RVMD Rally — Analyst Stays Bullish

• Revolution announced positive data from its own experimental cancer drug daraxonrasib in patients with metastatic pancreatic ductal adenocarcinoma, earlier in the day. 
• Erasca is focused on developing therapies for cancers like Revolution.
• The company has several names in its pipeline for pancreatic cancer including ERAS-0015 and ERAS-4001.

Shares of Erasca Inc. (ERAS) fell 7% on Monday on the heels of rival Revolution Medicines’s (RVMD) positive study data in pancreatic cancer, applauded as a “game changer” by Wall Street.  

Erasca is also focused on developing therapies for cancers, including pancreatic ductal adenocarcinoma (PDAC), like Revolution. The company has several names in its pipeline for pancreatic cancer, including ERAS-0015 and ERAS-4001.

Last month, Erasca entered into a clinical trial collaboration and supply agreement with Tango Therapeutics, Inc. (TNGX) to evaluate ERAS-0015, with Tango’s vopimetostat, in pancreatic cancer.

Revolution said earlier in the day that its late-stage trial evaluating its experimental cancer drug daraxonrasib in patients with metastatic pancreatic ductal adenocarcinoma, who had been previously treated, demonstrated statistically significant and clinically meaningful improvements in progression-free survival and overall survival compared with standard chemotherapy.

Patients treated with the drug lived a median of 13.2 months, compared with 6.7 months for those on chemotherapy, highlighting a meaningful benefit. The treatment was also generally well tolerated, with no new safety concerns reported, the company said. RBC Capital now sees daraxonrasib in metastatic pancreatic ductal adenocarcinoma as a "game-changer."

RVMD shares were up 41% at the time of writing.

Analyst Take Away

Jefferies called Revolution’s results in second-line pancreatic ductal adenocarcinoma "a clear win" for daraxonrasib, but kept the bar for Erasca unchanged. The firm kept its ‘Buy’ rating and $21 price target on Erasca shares.

According to data from Koyfin, eight of the 10 analysts covering ERAS stock rate it ‘Buy’ or higher, while one rates it ‘Hold’ and one rates it ‘Strong Sell.’ The average 12-month price target on the stock is $18.10, representing a potential upside of 14% from current trading levels.

How Did Retail Traders React?

On Stocktwits, retail sentiment around ERAS stock jumped from ‘neutral’ to ‘bullish’ territory over the past 24 hours, while message volume remained at ‘high’ levels.

ERAS stock has gained nearly 1,200% over the past 12 months, compared to RVMD’s 272% rally. 

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