Why Erasca (ERAS) Shares Are Falling Today - Erasca (NASDAQ:ERAS)

Erasca Inc ERAS has entered into an exclusive worldwide license agreement with Novartis AG NVS for naporafenib, a Phase 2 pivotal-ready pan-RAF inhibitor for NRAS mutant (NRASm) 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 and favorable safety and tolerability, Erasca says.
Erasca will pay Novartis a one-time upfront cash payment of $20 million and $80 million in Erasca shares at $6.50 per share.
Novartis is eligible to receive up to $80 million in cash upon achieving regulatory milestones covering two indications in the U.S., Europe, and Japan and up to $200 million in cash upon achieving sales milestones.
Novartis is also eligible to receive a low single-digit percentage royalty on net sales of naporafenib.
As separately announced, Erasca has priced a $100 million equity offering with 15.38 million shares at $6.50/share.
Price Action: ERAS shares are down 13.2% at $6.34 on the last check Friday.