Erasca Insider Sells $671K as Stock Jumps 189% This Past Year
Key Points
Erasca’s general counsel and corporate secretary sold 120,000 shares of the biotech for $670,800 in gross proceeds on Jan. 7.
The sale resulted from an option exercise with shares immediately sold; no indirect holdings or gifts were involved.
This is the insider's first reported sale of the stock.
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Garner Ebun, general counsel and corporate secretary of Erasca (NASDAQ:ERAS), executed an options exercise and immediate sale of 120,000 shares for a total value of $670,812 on Jan. 7, as disclosed in a recent SEC Form 4 filing.
Transaction summary
| Metric | Value |
|---|---|
| Shares sold (direct) | 120,000 |
| Transaction value | $670,800 |
| Post-transaction shares (direct common stock) | 25,076 |
| Post-transaction value (direct common stock) | $129,600 |
Transaction value based on SEC Form 4 weighted average purchase price ($5.59); post-transaction value based on Jan. 7 market close ($5.59).
Key questions
- What was the structure and context of this transaction?
The filing reflects the exercise of options on 120,000 shares that were immediately disposed through open-market sales; there were no gifts, withholdings, or indirect transfers. - How did this transaction affect the insider's ownership stake?
Direct common stock holdings fell from 145,076 to 25,076 shares, an 82.72% reduction. - Are further sales possible given remaining option capacity?
The insider retains 360,000 options outstanding (including vested and unvested awards), providing substantial capacity for additional exercises and potential sales. - How does the market context frame this event?
The sale occurred as the stock was priced at $5.59 per share (weighted average), with shares closing at $5.17 on Jan. 7 and up 189.77% for the year, suggesting the transaction monetized a period of significant appreciation.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close Jan. 7, 2026) | $5.59 |
| Market capitalization | $1.77 billion |
| Net income (TTM) | ($127.7 million) |
| 1-year price change | 189.77% |
* 1-year price change calculated using Jan. 7 as the reference date.
Company snapshot
- Erasca develops and advances clinical-stage therapies targeting RAS/MAPK pathway-driven cancers, including lead candidates ERAS-007 (ERK1/2 inhibitor), ERAS-601 (SHP2 inhibitor), and ERAS-801 (CNS-penetrant EGFR inhibitor).
- The biotech operates a research-driven business model focused on drug discovery, clinical development, and future commercialization of proprietary oncology therapeutics.
- It targets oncologists, healthcare providers, and patients with advanced or metastatic solid tumors, especially those with limited treatment options.
Erasca is a clinical-stage biotechnology company specializing in targeted therapies for cancer, with a particular emphasis on the RAS/MAPK pathway. The company is developing oral inhibitors including ERAS-007 (ERK1/2 inhibitor), ERAS-601 (SHP2 inhibitor), and ERAS-801 (CNS-penetrant EGFR inhibitor).
What this transaction means for investors
Though the first sale on record for this insider, this transaction followed a Rule 10b5-1 plan established back in June 2024, and it stemmed from an options exercise rather than discretionary open-market selling. While the reduction in direct ownership was sizable on paper, Ebun retains substantial option exposure, preserving alignment with future upside.
Operationally, Erasca’s latest update underscored growing momentum. Early clinical signals from ERAS-0015 showed confirmed and unconfirmed partial responses across multiple RAS-mutant tumor types at low doses, alongside favorable safety and pharmacokinetics. Meanwhile, in November, the company reiterated that its $362 million cash balance is expected to fund operations into the second half of 2028, and its quarterly net losses narrowed modestly year over year.
Ultimately, insider liquidity events like this one that are tied to compensation don’t override the company’s core thesis. Instead, drivers to watch include Phase 1 data this year, balance sheet durability, and whether early efficacy signals translate into durable clinical differentiation.
Glossary
Options exercise: The act of converting stock options into actual company shares, typically by paying a set price.
Form 4: A required SEC filing disclosing insider transactions in a company’s securities.
Insider: An individual with access to non-public company information, such as executives or directors.
Open-market sale: Selling securities directly on a public exchange rather than through private transactions.
Direct ownership: Shares held personally by an individual, not through trusts or other entities.
Indirect holdings: Securities owned through intermediaries, such as family trusts or investment vehicles.
Vested options: Stock options that have met required conditions and are eligible to be exercised.
Unvested awards: Stock options or grants not yet eligible for exercise due to unmet conditions or time requirements.
Weighted average purchase price: The average price paid per share, weighted by the number of shares bought at each price.
RAS/MAPK pathway: A cellular signaling pathway often involved in cancer growth and targeted by certain therapies.
CNS-penetrant: Describes drugs able to cross into the central nervous system (brain and spinal cord).
TTM: The 12-month period ending with the most recent quarterly report.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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