Verastem (NASDAQ:VSTM) Releases Quarterly Earnings Results

Key Points

• Verastem reported Q1 adjusted EPS of ($0.43), beating the consensus of ($0.46), but revenue of $18.67 million missed expectations and the stock traded down roughly 5.8% on the news.
• The company logged $18.7 million in Q1 net product revenue (about $50 million since launch) and expects the LGSOC CO‑PACK franchise to be self‑sustaining in H2 2026 after commercial refocusing and expanded sales efforts.
• Pipeline progress includes VS‑7375 dose escalation up to 1,200 mg (likely 900 mg go‑forward) with three phase II registration‑directed trials underway, but cash and investments of $181.7 million provide runway only into H1 2027, meaning strong execution or additional financing may be required.

Verastem (NASDAQ:VSTM - Get Free Report) released its quarterly earnings results on Thursday. The biopharmaceutical company reported ($0.43) earnings per share for the quarter, beating the consensus estimate of ($0.46) by $0.03, FiscalAI reports. The business had revenue of $18.67 million during the quarter, compared to analysts' expectations of $21.43 million.

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

• Verastem reported $18.7 million in Q1 net product revenue (nearly $50 million since launch) and expects the LGSOC CO-PACK franchise to be self-sustaining in H2 2026, driven by steady new-patient starts and expanding prescribers.
• Management has retooled commercial execution—appointing a new CCO, adding sales/headcount, launching the "Reimagine Recurrent LGSOC" campaign and improved patient follow-up—to drive earlier use at first recurrence and improve on-therapy retention.
• VS-7375 (TARGET-D) is advancing rapidly: phase I/II dose escalation is evaluating up to 1,200 mg with 900 mg as the likely go-forward dose, and three phase II registration-directed trials (PDAC, NSCLC, CRC) are initiated with mid-year enrollment and a planned first-half 101 safety/PK update.
• Early U.S. data show better tolerability and PK at higher doses than reported in China and no drug-related pneumonitis so far, supporting combination strategies (EGFR, PD-1) but efficacy/durability readouts and safety in larger cohorts remain pending.
• Cash and investments totaled $181.7 million at quarter-end, providing runway into the first half of 2027; given high R&D (Q1 $38.2M) and SG&A spend, the company may need non-dilutive financing or strict execution to avoid dilution if revenues or cost trends underperform.

Verastem Trading Down 5.8%

Shares of VSTM stock traded down $0.35 during trading hours on Thursday, reaching $5.66. The company's stock had a trading volume of 2,822,192 shares, compared to its average volume of 2,012,379. The stock has a market capitalization of $497.17 million, a P/E ratio of -1.77 and a beta of 0.34. Verastem has a one year low of $4.01 and a one year high of $11.24. The firm's fifty day simple moving average is $5.74 and its 200 day simple moving average is $7.14. The company has a current ratio of 3.09, a quick ratio of 3.07 and a debt-to-equity ratio of 1.33.

Institutional Investors Weigh In On Verastem

A number of large investors have recently made changes to their positions in the business. The Manufacturers Life Insurance Company grew its position in shares of Verastem by 9.8% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 16,188 shares of the biopharmaceutical company's stock worth $67,000 after buying an additional 1,440 shares during the last quarter. MetLife Investment Management LLC boosted its position in shares of Verastem by 10.6% during the fourth quarter. MetLife Investment Management LLC now owns 28,929 shares of the biopharmaceutical company's stock valued at $223,000 after purchasing an additional 2,784 shares in the last quarter. Russell Investments Group Ltd. boosted its position in shares of Verastem by 182.9% during the third quarter. Russell Investments Group Ltd. now owns 4,578 shares of the biopharmaceutical company's stock valued at $40,000 after purchasing an additional 2,960 shares in the last quarter. Osaic Holdings Inc. boosted its position in shares of Verastem by 27.1% during the fourth quarter. Osaic Holdings Inc. now owns 20,476 shares of the biopharmaceutical company's stock valued at $158,000 after purchasing an additional 4,366 shares in the last quarter. Finally, BNP Paribas Financial Markets boosted its position in shares of Verastem by 110.9% during the third quarter. BNP Paribas Financial Markets now owns 8,550 shares of the biopharmaceutical company's stock valued at $75,000 after purchasing an additional 4,496 shares in the last quarter. 88.37% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

VSTM has been the topic of a number of research reports. BTIG Research reissued a "buy" rating and set a $19.00 price objective on shares of Verastem in a report on Monday, April 20th. Mizuho set a $18.00 price target on Verastem in a research report on Thursday, February 19th. Jefferies Financial Group restated a "buy" rating and set a $15.00 price target (down from $19.00) on shares of Verastem in a research report on Monday, March 30th. HC Wainwright restated a "buy" rating and set a $18.00 price target on shares of Verastem in a research report on Friday, April 10th. Finally, Wall Street Zen lowered Verastem from a "hold" rating to a "sell" rating in a research report on Saturday, April 11th. Two analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Verastem presently has an average rating of "Moderate Buy" and a consensus price target of $16.60.

Verastem Company Profile

Verastem Oncology, Inc is a clinical-stage biopharmaceutical company focused on the discovery and development of small molecule therapies that target cancer stemness and resistance pathways. Established in 2010 and headquartered in Needham, Massachusetts, Verastem Oncology applies a precision-medicine approach to identify key signaling nodes responsible for tumor growth and relapse, with an emphasis on hematologic malignancies and solid tumors. The company’s research platform integrates insights into complex signaling networks to advance novel compounds from early discovery through clinical proof of concept.

The company’s lead marketed product is COPIKTRA (duvelisib), an oral inhibitor of PI3K-delta and PI3K-gamma, which received U.S.

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