Erasca Inc. (NASDAQ:ERAS) saw its stock rise 4.3% in premarket trading Monday following disclosure of a clinical trial collaboration and a supply agreement with Merck. The companies will collaborate on a clinical proof-of-concept study that pairs Erasca's investigational pan-RAS agent with Merck's immune checkpoint inhibitor.
The study, named AURORAS-1, will evaluate ERAS-0015 in combination with Merck's KEYTRUDA (pembrolizumab) in patients with RAS-mutant solid tumors. Under the terms announced, Merck will supply pembrolizumab to the trial at no cost, while Erasca will act as the study sponsor.
Company statement
Commenting on the collaboration, Jonathan E. Lim, Erasca's chairman, CEO, and co-founder, said: "We are excited to work with Merck to advance this promising investigational combination in RAS-driven cancers. RAS mutations activate the RAS/MAPK pathway and promote an immunosuppressive environment. Non-clinical data suggest that targeting the pathway with ERAS-0015 may complement PD-1 blockade by reducing immunosuppression and driving more robust and durable tumor responses."
Scope and rationale
The collaboration focuses on tumors driven by RAS mutations, a group of cancers the companies say affects approximately 2.7 million patients diagnosed each year worldwide. Erasca highlighted the continuing difficulty of treating RAS-driven tumors, noting that a lack of broadly effective therapies and the emergence of resistance mechanisms have hindered the ability to achieve and sustain responses.
Erasca framed AURORAS-1 as an effort to determine whether pan-RAS inhibition with ERAS-0015, when combined with pembrolizumab, can enhance therapeutic benefit while limiting the development of treatment resistance.
What the agreement covers
- Merck will provide KEYTRUDA (pembrolizumab) at no cost for the clinical proof-of-concept study.
- Erasca will sponsor the AURORAS-1 clinical trial evaluating ERAS-0015 plus pembrolizumab.
This collaboration links a development-stage biotech and a large pharmaceutical company in a study aimed at an area of oncology with acknowledged treatment gaps. The immediate market reaction for Erasca was a modest premarket share price increase as investors responded to the news.