Erasca Stock Is Up 715%. Here’s Why One Biotech Fund Still Bought $68 Million More
Key Points
Cormorant Asset Management bought 5,800,000 Erasca shares in the first quarter, an estimated $68.55 million trade based on quarterly average pricing.
The quarter-end position value rose by $93.84 million, reflecting both share purchases and price movement.
The transaction represented a 3.44% increase in reported 13F assets under management.
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Cormorant Asset Management disclosed a new position in Erasca (NASDAQ:ERAS) in its May 15, 2026, SEC filing, purchasing 5,800,000 shares in a trade estimated at $68.55 million based on quarterly average pricing.
What happened
According to its SEC filing dated May 15, 2026, Cormorant Asset Management initiated a new position in Erasca by acquiring 5,800,000 shares. The estimated transaction value was $68.55 million, calculated using the mean closing price for the first quarter of 2026. The quarter-end value of the position reached $93.84 million, reflecting share accumulation and changes in Erasca’s stock price.
What else to know
- Erasca was a new addition and accounted for 4.71% of Cormorant's 13F reportable assets after the quarter
- Top holdings after the filing:
- NASDAQ:PRAX: $285.30 million (14.4% of AUM)
- NASDAQ:BBOT: $160.01 million (8.1% of AUM)
- NASDAQ:EYPT: $106.54 million (5.4% of AUM)
- NASDAQ:EWTX: $102.69 million (5.2% of AUM)
- NASDAQ:ERAS: $93.84 million (4.7% of AUM)
- As of May 14, 2026, Erasca shares were priced at $10.37, up a staggering 715% over the prior year and vastly outperforming the S&P 500, which is instead up about 25%.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close 2026-05-14) | $10.37 |
| Market Capitalization | $3.15 billion |
| Net Income (TTM) | ($124.5 million) |
| One-Year Price Change | 715% |
Company Snapshot
- Erasca develops clinical-stage therapies targeting RAS/MAPK pathway-driven cancers, with lead candidates including ERAS-007 (oral ERK1/2 inhibitor), ERAS-601 (oral SHP2 inhibitor), and ERAS-801 (CNS-penetrant EGFR inhibitor).
- The firm operates a biopharmaceutical business model focused on discovering, developing, and commercializing novel oncology therapies, with future revenue expected from product approvals and commercialization.
- It targets patients with advanced or metastatic solid tumors, non-small cell lung cancer, colorectal cancer, acute myeloid leukemia, and recurrent glioblastoma multiforme.
Erasca, Inc. is a clinical-stage biotechnology company specializing in targeted oncology therapies for RAS/MAPK pathway-driven cancers. The company leverages a pipeline of differentiated small molecule inhibitors aimed at high unmet medical needs in oncology. Its strategic focus on innovative drug development positions it to address significant gaps in cancer treatment and drive long-term value upon successful commercialization.
What this transaction means for investors
After a massive run in Erasca stock, Cormorant’s willingness to build a nearly $94 million position suggests the fund still sees meaningful upside tied to Erasca’s clinical pipeline rather than just momentum trading.
The company has been moving quickly. Earlier this month, Erasca reported encouraging early data for ERAS-0015, its pan-RAS molecular glue therapy, showing promising responses in lung and pancreatic cancer patients alongside what management described as generally favorable safety results. The company also announced collaborations with both Merck and Tango Therapeutics to test combination approaches involving KEYTRUDA and other oncology assets.
Importantly for long-term investors, Erasca ended the quarter with about $409 million in cash and marketable securities, which management says should fund operations into the second half of 2028. Of course, Erasca still has no approved products and posted a quarterly net loss of $183 million. But for investors comfortable with biotech volatility, this filing suggests some sophisticated healthcare funds believe the company may have a real shot at becoming a meaningful player in precision oncology.
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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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