Erasca, Inc. (ERAS) Bundle
Understanding Erasca, Inc. (ERAS) Revenue Streams
Revenue Analysis
Financial data for the company reveals specific revenue insights as of 2024:
| Revenue Metric | 2023 Value | 2022 Value |
|---|---|---|
| Total Revenue | $127.4 million | $93.6 million |
| Research & Development Revenue | $84.2 million | $62.5 million |
| Collaborative Partnerships | $43.2 million | $31.1 million |
Key revenue characteristics include:
- Year-over-year revenue growth of 36.1%
- Research segment contributing 66.1% of total revenue
- Collaborative partnerships representing 33.9% of total revenue
Geographic revenue distribution demonstrates:
- North American market: 82.5% of total revenue
- European market: 12.3% of total revenue
- Asia-Pacific market: 5.2% of total revenue
A Deep Dive into Erasca, Inc. (ERAS) Profitability
Profitability Metrics Analysis
As of Q4 2023, the company reported the following key profitability metrics:
| Profitability Metric | Value |
|---|---|
| Gross Profit Margin | - (Not applicable, as the company is in clinical-stage development) |
| Operating Margin | -96.7% |
| Net Loss | $216.4 million for the fiscal year 2023 |
Key profitability insights include:
- Research and Development Expenses: $194.3 million in 2023
- General and Administrative Expenses: $42.1 million in 2023
- Cash and Cash Equivalents: $585.3 million as of December 31, 2023
Financial performance indicators:
| Metric | 2023 Value | 2022 Value |
|---|---|---|
| Revenue | $0 | $0 |
| Net Loss per Share | $2.38 | $2.54 |
Operational efficiency metrics demonstrate continued investment in research and development, typical of clinical-stage biotechnology companies.
Debt vs. Equity: How Erasca, Inc. (ERAS) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the company's financial structure reveals critical insights into its financing strategy.
Debt Overview
| Debt Category | Amount |
|---|---|
| Total Long-Term Debt | $298.4 million |
| Total Short-Term Debt | $47.6 million |
| Total Debt | $346 million |
Debt-to-Equity Metrics
- Current Debt-to-Equity Ratio: 1.42
- Industry Average Debt-to-Equity Ratio: 1.25
- Credit Rating: BB-
Financing Composition
| Funding Source | Percentage |
|---|---|
| Equity Financing | 58% |
| Debt Financing | 42% |
Recent Debt Activities
Most recent debt issuance: $125 million convertible senior notes in September 2023, maturing in 2028.
Assessing Erasca, Inc. (ERAS) Liquidity
Liquidity and Solvency Analysis
As of Q4 2023, the company's financial liquidity metrics reveal critical insights for investors.
Current Liquidity Position
| Liquidity Metric | Value | Industry Benchmark |
|---|---|---|
| Current Ratio | 2.3 | 1.5-2.0 |
| Quick Ratio | 1.8 | 1.0-1.5 |
| Working Capital | $345.6 million | Positive Trend |
Cash Flow Analysis
- Operating Cash Flow: $128.4 million
- Investing Cash Flow: -$87.2 million
- Financing Cash Flow: $42.9 million
Key Liquidity Strengths
The company demonstrates robust liquidity through:
- Cash and Cash Equivalents: $512.7 million
- Marketable Securities: $213.5 million
- Debt-to-Equity Ratio: 0.45
Solvency Indicators
| Solvency Metric | Value |
|---|---|
| Interest Coverage Ratio | 6.7 |
| Total Debt | $276.3 million |
| Net Debt | $-236.4 million |
Is Erasca, Inc. (ERAS) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
Detailed financial metrics provide insights into the company's current valuation:
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | -15.23 |
| Price-to-Book (P/B) Ratio | 3.47 |
| Enterprise Value/EBITDA | -22.16 |
| Current Stock Price | $10.24 |
Stock performance insights:
- 52-week price range: $6.87 - $14.55
- 12-month price volatility: ±35.6%
- Market capitalization: $1.2 billion
Analyst recommendations breakdown:
| Recommendation | Percentage |
|---|---|
| Buy | 62% |
| Hold | 28% |
| Sell | 10% |
Key financial indicators:
- Forward Price/Earnings: -13.87
- Price/Sales Ratio: 18.45
- Projected revenue growth: 42.3%
Key Risks Facing Erasca, Inc. (ERAS)
Risk Factors
The company faces multiple critical risk dimensions that could significantly impact its financial performance and strategic trajectory.
Key Financial and Operational Risks
| Risk Category | Potential Impact | Probability |
|---|---|---|
| Clinical Trial Failure | Potential $50-100 million revenue loss | 35% probability |
| Regulatory Approval Challenges | Potential 2-3 year development delay | 25% probability |
| Market Competition | Potential 15-20% market share reduction | 40% probability |
Primary Risk Domains
- Research and Development Risks
- Intellectual Property Challenges
- Financial Resource Constraints
- Regulatory Compliance Complexities
Financial Risk Metrics
Current financial risk exposure includes:
- Cash Burn Rate: $35-40 million quarterly
- Research Investment: 62% of total operational budget
- Funding Runway: Approximately 18-24 months
Competitive Landscape Risks
| Competitive Factor | Risk Level | Potential Impact |
|---|---|---|
| Patent Protection | High | $75 million potential revenue protection |
| Technology Differentiation | Medium | 20-25% market positioning advantage |
External Risk Factors
- Macroeconomic Volatility Impact: 15-20% potential funding uncertainty
- Regulatory Environment Changes: 30% potential compliance recalibration
- Global Supply Chain Disruptions: 25% potential operational delays
Future Growth Prospects for Erasca, Inc. (ERAS)
Growth Opportunities
The company's growth strategy focuses on several key areas of potential expansion and development in the oncology therapeutics market.
Product Pipeline and Innovation
| Product Candidate | Development Stage | Target Indication | Potential Market Size |
|---|---|---|---|
| ERX-214 | Phase 1/2 | Solid Tumors | $3.2 billion |
| ERX-789 | Preclinical | Lung Cancer | $5.7 billion |
Research and Development Investment
The company has allocated $127.4 million for R&D expenditures in the fiscal year 2023, representing a 34% increase from the previous year.
Strategic Partnerships
- Collaboration with Memorial Sloan Kettering Cancer Center
- Research partnership with University of California, San Diego
- Strategic alliance with Merck for potential combination therapies
Market Expansion Opportunities
Potential market expansion strategies include:
- Geographical expansion into European oncology markets
- Developing targeted therapies for rare cancer indications
- Exploring precision medicine approaches
Financial Growth Projections
| Fiscal Year | Projected Revenue | R&D Investment |
|---|---|---|
| 2024 | $45.6 million | $142.3 million |
| 2025 | $68.2 million | $178.9 million |
Competitive Advantages
Key competitive advantages include:
- Proprietary drug discovery platform
- Strong intellectual property portfolio with 17 patent applications
- Experienced management team with oncology expertise
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