RTW just made Erasca its big biotech swing

When a fund gets very, very interested

RTW Investments didn’t exactly nibble here. It bought 16,010,524 shares of Erasca last quarter, a position the article pegs at about $189.23 million based on the quarter’s average share price.

For a smaller biotech, that’s the kind of stake that makes the market sit up a little straighter. When a specialized healthcare fund decides to go big, traders tend to read it as a vote of confidence that the story still has legs — even if the company’s fortunes can change faster than your phone battery percentage.

Why investors care

This isn’t an earnings beat or a new drug approval. It’s portfolio chess. Big institutional buys can matter because they:

• signal that a professional investor sees upside
• can tighten the float and add support to the shares
• sometimes arrive when sentiment is already turning hot

And Erasca’s stock has apparently been on a wild ride, with shares skyrocketing 800% in the backdrop here. That kind of move can attract momentum traders, skeptics, and everyone in between — basically the market equivalent of a karaoke night where no one agrees on the song.

The big picture

The takeaway is simple: RTW didn’t just stop by for a look. It made a chunky, high-conviction bet on Erasca, and that can keep the stock in the spotlight. Big picture: in biotech, a heavyweight fund buy isn’t proof of anything — but it is often the market’s way of saying, “Hey, maybe keep an eye on this one.”