Erasca Inc. (NASDAQ:ERAS) stock is trading lower on Monday, though there is no news to justify the movement.

Erasca stock is trading close to the upper end of its 52-week range of $1.01 – 10.67, according to Benzinga Pro data.

The movement came in reaction when U.S. pharma giant Merck & Co., Inc. (NYSE:MRK) reportedly ended discussions to acquire cancer drug developer Revolution Medicines, Inc. (NASDAQ:RVMD) after the two sides disagreed on valuation.

The talks had valued Revolution Medicines at roughly $30 billion. Citing people familiar with the matter, the Wall Street Journal report on Sunday signaled Merck's continued discipline on deal size despite interest in high-growth oncology assets.

How Are The Companies Related?

Revolution Medicines is a late-stage clinical oncology company developing novel targeted therapies for patients with RAS-addicted cancers.

The company's R&D pipeline comprises RAS(ON) inhibitors designed to suppress diverse oncogenic variants of RAS proteins.

In September 2025, Revolution Medicines shared updates from its Daraxonrasib Phase 1 trials, including in patients with RAS mutant pancreatic cancer.

Erasca, a clinical-stage precision oncology company, is also focused on discovering, developing, and commercializing therapies for RAS/MAPK pathway-driven cancers.

Erasca is conducting two Phase 1 trials with lead drug ERAS-0015 in patients with RAS-mutant solid tumors. Initial data is expected in 2026.

Last week, Erasca priced its upsized public offering of 22.5 million shares at $10.00 per share, equivalent to gross proceeds of $225 million.

Erasca plans to use the proceeds to fund the research and development of its product candidates and other development programs, and for working capital and other general corporate purposes.

Price Action: ERAS stock is down 7.13% at $9.25 during the premarket session at the last check on Monday, according to Benzinga Pro data.

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