Erasca, Novartis enter worldwide license agreement for naporafenib

Erasca (ERAS) entered into an exclusive worldwide license agreement with Novartis (NVS) for naporafenib, a Phase 2 pivotal-ready pan-RAF inhibitor with a potential profile in NRAS mutant melanoma and other RAS/MAPK pathway-driven tumors. To date, naporafenib has been dosed in over 500 patients across multiple trials and has demonstrated preliminary clinical proof-of-concept as well as favorable safety and tolerability data both as a single agent and in combination with other molecularly targeted and immuno-oncology therapies. As separately announced, Erasca has priced a $100M equity offering with select healthcare investors. Naporafenib is a potent and selective inhibitor of BRAF and CRAF. Safety, tolerability, and preliminary proof of concept of naporafenib alone or in combination have been shown in over 500 patients treated to date in NRASm melanoma and other RAS/MAPK pathway-driven tumors. Erasca plans to initially focus on advancing and securing potential regulatory approval for naporafenib plus trametinib in RAS Q61X tissue agnostic solid tumors as part of the planned Phase 2 SEACRAFT-1 trial and NRASm melanoma as part of the planned Phase 3 SEACRAFT-2 trial. Under the terms of the license agreement, in exchange for an exclusive worldwide license to develop and commercialize naporafenib, Erasca will pay to Novartis a one-time upfront cash payment of $20M and $80M of shares in Erasca common stock at a price of $6.50 per share. Novartis is eligible to receive up to $80M in cash upon the achievement of regulatory milestones covering two indications in the United States, Europe, and Japan, as well as up to $200M in cash upon the achievement of sales milestones. Novartis is also eligible to receive a low single-digit percentage royalty on net sales of naporafenib.