Cancer Drug Stocks Recover 500 Billion Won in Market Cap Amid Patent Disputes and Class Action Risks

Erasca Inc., a developer of anti-cancer drugs, saw its shares (NASDAQ: ERAS) close at $14.40 on June 17, up 7.62% from the previous day. Trading volume exceeded 3.02 million shares, lifting the company’s market capitalization by about $370 million (approximately KRW 520 billion) to around $4.48 billion (about KRW 6.3 trillion).

The company is currently facing multiple securities class action lawsuits over the sharp share price decline following its disclosure of patent and trade secret infringement claims filed by competitor Revolution Medicines concerning its lead investigational candidate, ERAS-0015. In January, Erasca completed a follow-on public offering of common stock at $10 per share, raising roughly $259 million (around KRW 360 billion), which management says extends its cash runway into the first half of 2029.

Founded in 2018 and based in San Diego, Erasca is a clinical-stage precision oncology company targeting the RAS–MAPK pathway to “erase” cancer. Its pipeline includes naporafenib, a pan-RAF inhibitor; ERAS-801, an EGFR inhibitor for brain tumors; and ERAS-0015, a pan-RAS molecular glue. Upcoming clinical data and the outcome of ongoing legal disputes are expected to be key catalysts for the stock.