On Friday, Goldman Sachs (NYSE:GS) adjusted its outlook on Erasca Inc (NASDAQ:ERAS) stock, a clinical-stage precision oncology company. The firm raised its price target on the company's shares to $3.50 from $3.00, while reiterating a Buy rating.
The revision follows Erasca's recent virtual research and development event, where the company shared Phase 1 data from the SEACRAFT-1 trial. This trial examined naporafenib in combination with trametinib for the treatment of RAS Q61X solid tumors. The data was presented at the Triple Meeting, which encompasses the European Organisation for Research and Treatment of Cancer (EORTC), the National Cancer Institute (NCI), and the American Association for Cancer Research (AACR) symposiums.
Despite the data not meeting the efficacy bar for all tumor types, Goldman Sachs found the results in NRAS mutant melanoma patients particularly promising. The safety and efficacy data showed a reduction in skin toxicity, which the analyst believes supports confidence in the ongoing SEACRAFT-2 trial, focused on a similar patient group. Results for dose optimization from this trial are anticipated in 2025.
Additionally, the event spotlighted preclinical findings for Erasca's other assets, including pan-RAS (ERAS-0015) and pan-KRAS (ERAS-4001) inhibitors. These are of significant interest to investors, especially considering analogous positive developments from peer companies in the field.
Goldman Sachs has updated its financial model for Erasca, removing expected revenues from naporafenib for Q61X mutant patients, excluding melanoma cases. Conversely, the model now incorporates projections for ERAS-0015, which ultimately led to the increased price target. The firm's stance remains positive on Erasca's stock, as reflected in the maintained Buy rating.
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