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Erasca shareholders elect directors, approve KPMG as auditor

EditorBrando Bricchi
Published 06/24/2024, 01:39 PM
ERAS
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SAN DIEGO – Erasca, Inc., a pharmaceutical company engaged in developing targeted therapies for cancer, announced the results of its annual meeting of stockholders held on Thursday. Shareholders elected two Class III Directors and ratified the appointment of KPMG LLP as the company's independent auditor for the current fiscal year.

At the meeting, a total of 122,068,424 shares were represented, either in person or by proxy, from the 173,358,966 shares entitled to vote. Shareholders cast their votes to elect Jean I. Liu, J.D., and Pratik S. Multani, M.D., as Class III Directors for a three-year term expiring at the 2027 annual meeting. Liu received 97,445,199 votes in favor, with 626,030 withheld, and Multani garnered 86,232,106 votes for, with 11,820,884 withheld. There were 23,997,194 and 24,015,433 broker non-votes for Liu and Multani, respectively.

In addition to the election of directors, the stockholders ratified the appointment of KPMG LLP as Erasca's independent registered public accounting firm for the fiscal year ending December 31, 2024. The proposal was passed with 121,955,813 votes for, 48,080 withheld, and 64,531 against.

The annual meeting was conducted in accordance with the Securities Exchange Act of 1934, and the results were filed with the Securities and Exchange Commission (SEC) on Monday. Erasca, incorporated in Delaware and headquartered at 3115 Merryfield Row, San Diego, operates under the trading symbol ERAS on the Nasdaq Global Select Market.

This announcement is based on a press release statement. The company's General Counsel, Ebun Garner, signed off on the report, ensuring compliance with SEC regulations. The voting outcomes reflect the shareholders' decisions on the governance of the company for the upcoming term.

In other recent news, Erasca Inc. has been making notable moves in the oncology sector. H.C. Wainwright recently adjusted its target on Erasca shares, lowering it to $5 from $8 while maintaining a Buy rating. This decision was influenced by Erasca's strategic actions, including the acquisition of licenses for two experimental drugs, ERAS-0015 and ERAS-4001, aimed at treating solid tumors.

Erasca has secured exclusive licensing agreements for these preclinical RAS programs, potentially marking a significant advancement in the treatment of RAS-mutant solid tumors. The company also announced a strategic pipeline prioritization and workforce restructuring to focus on high-impact programs. Concurrently, Erasca priced a $160 million equity offering, attracting investment from a mix of new and existing healthcare-focused investors.

Goldman Sachs also adjusted its outlook on Erasca, raising the stock's price target from $6.00 to $7.00 while maintaining a Buy rating. This followed Erasca's fourth-quarter 2023 update, which highlighted the company's Phase 3 study plans for its primary late-stage clinical asset, naporafenib, and the completion of a $45 million private placement financing. The company anticipates key milestones for its naporafenib program and plans to file Investigational New Drug applications for ERAS-0015 and ERAS-4001 in 2025.

InvestingPro Insights

In light of Erasca, Inc.'s recent annual meeting, investors may be keen to understand the financial health and market performance of the company. According to real-time data, Erasca holds a market capitalization of $575.12M, which is a critical indicator of the company's size and market value. Despite the challenges faced in profitability, with an adjusted P/E ratio for the last twelve months as of Q1 2024 standing at -4.53, the company has shown some positive momentum with a 5.5% one-week total price return. This suggests a short-term uptick in investor confidence following the annual meeting.

From an operational standpoint, the company's operating income and EBITDA for the last twelve months as of Q1 2024 were reported at -$143.35M and -$139.51M, respectively, highlighting the current financial challenges Erasca is facing. However, an InvestingPro Tip reveals that the company holds more cash than debt on its balance sheet, which is an encouraging sign of financial stability and may provide some cushion against operational losses.

Moreover, analysts have revised their earnings upwards for the upcoming period, as per another InvestingPro Tip. This could indicate a potential shift in the company's trajectory, aligning with the strategic decisions made during the annual meeting. For investors seeking a deeper dive into Erasca's financials and future outlook, InvestingPro offers additional tips. Utilize coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription and uncover more insights on Erasca at https://www.investing.com/pro/ERAS. In total, there are 6 additional InvestingPro Tips available for Erasca, providing a comprehensive analysis for informed investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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