Verastem (NASDAQ:VSTM) Posts Quarterly Earnings Results, Misses Expectations By $0.25 EPS

Key Points

• Verastem reported a quarterly loss of $0.72 per share, missing analyst expectations by $0.25, while revenue of $24.01 million also came in below estimates.
• Third-quarter net product revenue rose 114% year over year to about $24 million; refills were strong, though new patient starts moderated from the prior quarter.
• After raising about $250 million, Verastem reported pro forma cash of $422.8 million and expects its runway to extend into the first half of 2028, supporting planned clinical trials and cancer-drug development.

Verastem (NASDAQ:VSTM - Get Free Report) posted its quarterly earnings results on Thursday. The biopharmaceutical company reported ($0.72) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.47) by ($0.25), FiscalAI reports. The firm had revenue of $24.01 million for the quarter, compared to analyst estimates of $26.57 million. Verastem had a negative return on equity of 467.49% and a negative net margin of 231.59%.

Here are the key takeaways from Verastem's conference call:

• Third-quarter net product revenue was $24 million, up 114% year over year. Refills were strong, but new patient starts moderated after substantial Q2 growth; management said quarterly starts can fluctuate and expects continued growth as physician adoption broadens.
• The FDA accepted the new blister-pack NDA for priority review, with a February 2027 PDUFA date. If approved, the presentation would reduce pill burden, eliminate refrigeration, and make dosing and storage easier—changes the company believes could support adherence and time on therapy.
• Verastem reported encouraging early VS-7375 results in KRAS G12D cancers, including a 50% confirmed response rate in second-line pancreatic cancer, as well as activity in colorectal and lung cancer. The company also highlighted a manageable safety profile, while noting the data remain early and based on relatively small patient groups.
• The company reached FDA agreement on its first-line pancreatic cancer Phase III trial, which it plans to start by year-end 2026; it aims to begin first-line colorectal and lung Phase III trials in the first half of 2027. The pancreatic trial includes response rate and progression-free survival as dual primary endpoints, but the company said accelerated approval based on response rate is not assured.
• Verastem raised about $250 million in gross proceeds in October, bringing pro forma quarter-end cash to $422.8 million and extending its expected runway into the first half of 2028. Adjusted net loss widened to $72.8 million from $39.1 million a year earlier as the company continued investing in its clinical program.

Verastem Price Performance

VSTM stock traded down $0.47 during trading on Thursday, reaching $9.38. 3,032,681 shares of the company were exchanged, compared to its average volume of 2,577,388. The company has a 50-day moving average of $8.32 and a two-hundred day moving average of $6.22. The company has a market capitalization of $849.45 million, a price-to-earnings ratio of -3.53 and a beta of 0.45. Verastem has a twelve month low of $3.43 and a twelve month high of $10.82. The company has a debt-to-equity ratio of 1.48, a current ratio of 2.25 and a quick ratio of 2.22.

Insiders Place Their Bets

In other Verastem news, CEO Dan Paterson sold 44,121 shares of the business's stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $8.00, for a total transaction of $352,968.00. Following the sale, the chief executive officer owned 652,712 shares of the company's stock, valued at approximately $5,221,696. The trade was a 6.33% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 46,742 shares of company stock valued at $373,920 in the last quarter. Company insiders own 1.94% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on VSTM. Wall Street Zen upgraded Verastem from a "sell" rating to a "hold" rating in a research note on Sunday, September 27th. Citigroup reaffirmed a "buy" rating on shares of Verastem in a report on Thursday, October 8th. Benchmark reiterated a "buy" rating on shares of Verastem in a research note on Friday, October 16th. Jefferies Financial Group reissued a "buy" rating and set a $13.00 price target (up from $11.00) on shares of Verastem in a report on Wednesday, October 14th. Finally, Guggenheim set a $12.00 price objective on Verastem and gave the stock a "buy" rating in a research report on Friday, August 7th. Eleven equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Verastem currently has a consensus rating of "Moderate Buy" and an average price target of $16.67.

Verastem Company Profile

Verastem, operating as Verastem Oncology, is a biopharmaceutical company focused on developing and commercializing targeted therapies for cancer. The company's research is centered on tumors driven by abnormalities in the RAS/MAPK signaling pathway, which can promote cancer-cell growth and resistance to treatment.

Verastem's leading product candidates include avutometinib, an oral RAF/MEK clamp designed to inhibit signaling within the RAS/MAPK pathway, and defactinib, an oral focal adhesion kinase inhibitor.

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