Erasca price target lowered to $8 from $10 at H.C. Wainwright

H.C. Wainwright lowered the firm’s price target on Erasca to $8 from $10 and keeps a Buy rating on the shares. Given the strategic de-priorization of ERAS-601, the firm has removed ERAS-601 in HPV-negative HNSCC and ERAS-601 in triple WT CRC from its valuation and also adjusted operating expense assumptions. The firm, which also notes that Erasca announced the alignment of the FDA and EMA on the Phase 3 study design of SEACRAFT-2 exploring the use of naporafenib plus trametinib in patients with NRAS melanoma, says it is “optimistic” about naporafenib’s approval in that indication.