In a report released today, Sean Lee CFA from H.C. Wainwright maintained a Buy rating on Verastem, with a price target of $14.00.
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Sean Lee CFA has given his Buy rating due to a combination of factors including Verastem’s promising start in the commercialization of their Avmapki Fakzynja Co-Pack for low-grade serous ovarian cancer (LGSOC). The product received accelerated FDA approval and has been rapidly integrated into the market, with the company’s sales team reaching out to major institutions treating LGSOC. Despite the slow progression nature of LGSOC, which affects immediate sales, the inclusion of the product in the NCCN treatment guidelines and broad payer support suggests a positive outlook for future revenue growth.
Additionally, Verastem’s financial health appears robust, with reported revenues surpassing expectations and a cash reserve sufficient to fund operations through the foreseeable future. Another significant factor influencing the Buy rating is the ongoing KRAS study, which is investigating the company’s novel oral KRAS G12D inhibitor, VS-7375. The anticipated preliminary results in Q4 could serve as a critical catalyst, potentially expanding the study to include various cancers, thereby enhancing Verastem’s market potential.
Lee CFA covers the Healthcare sector, focusing on stocks such as Verastem, Senseonics Holdings, and Cytosorbents. According to TipRanks, Lee CFA has an average return of -3.6% and a 29.57% success rate on recommended stocks.