Cancer Drug Stocks Plunge 30% Amid Patent Dispute

On April 27, Erasca (ERASCA INC: ERAS) shares on Nasdaq plunged as much as 30.48% in a single day, falling to $14.85 intraday with trading volume exceeding 14.45 million shares. Its market capitalization shrank to about $4.6 billion (approximately KRW 6.8 trillion), wiping out roughly $1.08 billion (around KRW 1.6 trillion) in market value that day.

Erasca had touted the “best-in-class” potential of its pan-RAS molecular glue, ERAS-0015, after reporting up to a 62% tumor response rate in an early Phase 1 dose-escalation study in KRAS-mutant non-small cell lung and pancreatic cancer patients. However, investor confidence turned sharply negative when an 8-K filing revealed that Revolution Medicines alleges ERAS-0015 infringes its U.S. patents and trade secrets, demanding that Erasca halt manufacturing and development and delete comparative data.

Erasca is a U.S. clinical-stage biotech focused on precision oncology therapies targeting the RAS/MAPK pathway in solid tumors. Its pipeline includes the pan-RAS molecular glue ERAS-0015, the pan-RAF inhibitor naporafenib and the pan-KRAS inhibitor ERAS-4001. The company’s stock has soared over 400% year-to-date, and through large equity raises it has secured R&D funding through 2029.