Erasca shares fall after upsized follow-on pricing
Precision oncology co Erasca's ERAS.O shares were down 2.2% at $17.50 in premarket trading on Tuesday after the $550 mln follow-on was priced.
San Diego, California-based biotech late Monday sold about 31.4 mln shares at $17.50, a 2.2% discount to the last sale.
The company after the bell on Monday unveiled a $500 mln stock offering and announced updated Phase 1 data for ERAS-0015 in patients with solid tumors caused by mutations in the RAS gene.
Erasca said it intends to use the net offering proceeds to fund R&D of its product candidates, other development programs, among other purposes.
JPMorgan, Morgan Stanley, Jefferies and Evercore were joint bookrunners.
On Apr. 28, ERAS shares tumbled 48% after the company said a patient died in an early-stage trial of ERAS-0015.
Even so, the stock has risen nearly fivefold year to date, giving the company a roughly $5.6 bln market cap.
Nine of 11 analysts rate the stock "strong buy" or "buy," while two rate it "hold"; the median price target is $20, according to LSEG data.
