tiprankstipranks
Erasca Slides After Public Offering; Inks Licensing Deal with NVS
Market News

Erasca Slides After Public Offering; Inks Licensing Deal with NVS

Shares of Erasca (NASDAQ: ERAS) slid by more than 11% in morning trading on Friday after the clinical-stage precision oncology company announced the pricing of its public offering of 15.38 million shares of its common stock at a price of $6.50 per share.

The gross proceeds to Erasca from the offering, before deducting the offering expenses, are expected to be around $100 million. The offering is expected to close on December 13.

Moreover, the company also announced an exclusive worldwide license agreement with Novartis (NVS) for naporafenib, a potential drug against cancer.

As a part of this licensing agreement, Erasca will pay Novartis a “one-time upfront cash payment of $20 million and $80 million of shares in Erasca common stock at a price of $6.50 per share. “

Novartis would also be eligible to receive up to $80 million in cash upon the “achievement of regulatory milestones covering two indications in the United States, Europe, and Japan, as well as up to $200 million in cash upon the achievement of sales milestones.” In addition, NVS would also receive a “low single-digit percentage royalty on net sales of naporafenib.”

ERAS stock has dropped more than 50% this year.

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles