Erasca Shares Collapse 48% After IP Challenge, $2.8B Market Cap Wiped Out
Erasca’s shares plunged 48% on April 28 after Revolution Medicines challenged the IP validity of its lead candidate ERAS-0015, claiming trade secret misappropriation and patent infringement, wiping out $2.8 billion in market cap. National firm Hagens Berman launched an investor probe into potential misstatements of ERAS-0015’s intellectual property robustness.
1. Revolution Medicines Challenges ERAS-0015 IP
On April 27, Revolution Medicines’ legal team sent Erasca a letter alleging that ERAS-0015 infringes on RevMed’s RMC-6236 patent and incorporates misappropriated trade secrets. The letter demands that Erasca cease commercialization of ERAS-0015 in the U.S. and halt public comparisons of preclinical data.
2. Shares Plunge, $2.8B Wiped Out
The following day, Erasca’s share price fell by $9.25, a 48% decline, erasing over $2.8 billion in market capitalization. This reaction marks one of the steepest single-day drops for a NASDAQ biotech stock in recent years.
3. Hagens Berman Launches Investor Probe
National plaintiffs’ firm Hagens Berman opened an investigation into whether Erasca misled investors about the strength and exclusivity of its ERAS-0015 intellectual property. The firm is seeking shareholders who suffered significant losses or possess relevant information to support potential litigation.