Verastem (VSTM) AI Stock Analysis

• Market Cap: $488.36M
• Dividend Yield: N/A
• Average Volume (3M): 1.67M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: 33.79%
• EPS Growth: -26.37%
• Country: US
• Employees: 78
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.39
• Shares Outstanding: 87,835,106
• 10 Day Avg. Volume: 2,072,784
• 30 Day Avg. Volume: 1,672,319
• PEG Ratio: 0.15
• Price to Book (P/B): 9.35
• Price to Sales (P/S): 17.31
• P/FCF Ratio: -3.89
• Enterprise Value/Market Cap: 0.43
• Enterprise Value/Revenue: 6.74
• Enterprise Value/Gross Profit: 8.05
• Enterprise Value/Ebitda: -0.96
• 1Y Price Target: $16.67
• Price Target Upside: 199.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): -1.65
• Revenue Forecast (FY): $115.82M

• Rating: 49 Neutral
• Price Target: $6.00 ▲(7.91% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is held back primarily by weak financial fundamentals (large losses, worsening cash burn, and meaningful leverage) and a bearish technical setup (trading below major moving averages with negative MACD). Offsetting these risks, the latest earnings call points to improving commercial traction, multiple clinical milestones, and cash runway into H1 2027, but funding and execution risk remain elevated.

Positive Factors

Regulatory Approval

Securing FDA approval and an on-schedule commercial launch creates a durable commercial foothold in a defined orphan oncology niche. Approval de-risks regulatory execution, enables contracting and formulary work, and forms the basis for sustained revenue, prescriber relationships, and future label expansions.

Early Commercial Traction

Material initial revenues and nearly 300 prescribers reflect product-market fit in a specialized oncology segment. Strong academic adoption, payer coverage metrics, and co-pay program uptake support scalable commercial infrastructure and increase the likelihood the franchise becomes self-sustaining once launch costs normalize.

Pipeline Diversification & Development Progress

A Fast Track KRAS G12D program with early dosing data and partner activity diversifies risk beyond the lead co-pack. Multiple active programs and partner engagement increase upside optionality, shorten potential regulatory pathways for new indications, and reduce dependency on a single near-term asset.

Negative Factors

Heavy Cash Burn

Sustained large negative operating cash flow materially increases the probability the company needs additional financing before longer-term readouts. That creates execution risk, potential dilution or costly financing, and constrains flexibility to fund trials, commercial expansion, or partnership negotiations over the next 12–18 months.

Large & Worsening Losses

Very large absolute losses and widening operating deficits indicate profitability is distant. High R&D and commercial spend needed to support launches and confirmatory trials will likely continue losses, pressuring liquidity and limiting reinvestment capacity absent sustained revenue growth or external funding.

Guideline/Reimbursement Constraints

Lack of guideline inclusion for KRAS wild-type and reported payer pushback on off-label uses structurally limit the addressable market and reimbursement breadth. Combined with a confirmatory readout timing into mid-2027, this restricts durable uptake outside the KRAS-mutant population and slows pathway to broader label-driven demand.

Verastem Business Overview & Revenue Model

Company Description

Verastem, Inc., a development-stage biopharmaceutical company, focusing on developing and commercializing drugs for the treatment of cancer. Its product in development includes VS-6766, a dual rapidly accelerated fibrosarcoma (RAF)/mitogen-activated protein kinase (MEK) clamp that blocks MEK kinase activity and the ability of RAF to phosphorylate MEK. The company also engages in developing RAMP 201, an adaptive two-part multicenter, parallel cohort, randomized open label trial to evaluate the efficacy and safety of VS-6766 and in combination with defactinib, an oral small molecule inhibitor of focal adhesion kinase (FAK) in patients with recurrent low grade serous ovarian cancer; and RAMP 202, which is in Phase 2 trial to evaluate the safety of VS-6766 in combination with defactinib in patients with KRAS and BRAF mutant non-small cell lung cancer following treatment with a platinum-based regimen and immune checkpoint inhibitor. Verastem, Inc. has license agreements with Chugai Pharmaceutical Co., Ltd. for the development, commercialization, and manufacture of products containing VS-6766; and Pfizer Inc. to research, develop, manufacture, and commercialize products containing Pfizer's inhibitors of FAK for therapeutic, diagnostic and prophylactic uses in humans. In addition, it has clinical collaboration agreement with Amgen, Inc. to evaluate the combination of VS-6766 with Amgen's KRAS-G12C inhibitor LUMAKRASTM which in Phase 1/2 trial entitled RAMP 203. The company was incorporated in 2010 and is headquartered in Needham, Massachusetts.

How the Company Makes Money

Verastem makes money through the development and commercialization of its oncology therapies. The company's revenue model includes income from product sales, particularly from its commercialized therapies, licensing agreements, and potential milestone payments from strategic partnerships. These partnerships often involve collaboration with other pharmaceutical companies for the development and marketing of its drug candidates. Additionally, Verastem may receive research and development funding from these partnerships, contributing to its financial earnings. The company's ability to generate revenue is significantly influenced by the success of its clinical trials, regulatory approvals, and market acceptance of its drugs.

Verastem Financial Statement Overview

Summary

Revenue accelerated sharply in 2025 ($30.9M, +~131% YoY), and equity returned to positive ($57.2M). However, profitability and cash flow remain very weak with a large net loss ($209.5M) and worsening operating cash burn (-$137.5M), while leverage is meaningful for an unprofitable biotech (debt-to-equity ~1.34).

Income Statement

Revenue rebounded sharply in 2025 ($30.9M, up ~131% year over year) after a low/zero revenue base in prior years, showing improved commercialization traction. However, profitability remains very weak: 2025 net loss was $209.5M with deeply negative margins (net margin about -678%), and operating losses have widened versus 2024 (EBIT down to -$170.1M from -$115.0M). Overall, the top-line trajectory improved, but losses remain outsized relative to revenue.

Balance Sheet

The balance sheet improved meaningfully in 2025 with stockholders’ equity back to positive ($57.2M) after being negative in 2024, and assets increased to $246.4M. Leverage is now moderate-to-elevated for an unprofitable biotech: debt rose to $76.9M and debt-to-equity is ~1.34, which increases financing risk if losses persist. Returns to shareholders remain highly negative (2025 return on equity about -3.66), reflecting ongoing value dilution/erosion from net losses.

Cash Flow

Cash burn remains heavy and is moving in the wrong direction: 2025 operating cash flow was -$137.5M (worse than -$104.8M in 2024), and free cash flow was similarly negative at -$137.5M. While the company has shown periods of reduced burn earlier in the history, the most recent year indicates increased cash needs, which typically implies higher dependence on additional funding.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	30.91M	10.00M	0.00	2.60M	2.05M
Gross Profit	25.62M	10.00M	0.00	2.60M	2.05M
EBITDA	-170.13M	-125.86M	-83.17M	-71.56M	-61.16M
Net Income	-209.47M	-130.64M	-87.37M	-73.81M	-71.20M
Balance Sheet
Total Assets	246.44M	101.54M	149.72M	95.05M	108.66M
Cash, Cash Equivalents and Short-Term Investments	204.99M	88.82M	137.13M	87.89M	100.26M
Total Debt	76.86M	42.25M	41.56M	27.07M	3.18M
Total Liabilities	189.25M	130.43M	92.34M	47.66M	21.10M
Stockholders Equity	57.20M	-28.89M	57.37M	47.39M	87.56M
Cash Flow
Free Cash Flow	-137.51M	-104.80M	-86.46M	-63.67M	-53.70M
Operating Cash Flow	-137.51M	-104.77M	-86.46M	-63.67M	-53.50M
Investing Cash Flow	-9.62M	59.97M	-44.45M	66.19M	87.00K
Financing Cash Flow	263.31M	54.78M	134.19M	51.78M	6.88M

Verastem Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VSTM, the sentiment is Negative. The current price of 5.56 is below the 20-day moving average (MA) of 5.90, below the 50-day MA of 6.30, and below the 200-day MA of 7.42, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 40.01 is Neutral, neither overbought nor oversold. The STOCH value of 15.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VSTM.

Verastem Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVIR	57 Neutral	$470.86M	-1.84	-46.34%	―	―	14.33%
MNPR	53 Neutral	$389.59M	-42.31	-25.72%	―	―	-73.48%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
VSTM	49 Neutral	$488.36M	-2.55	-1849.88%	―	33.79%	-26.37%
SLN	46 Neutral	$313.16M	-6.10	―	―	―	―
CRDF	45 Neutral	$123.74M	-4.09	-82.00%	―	-27.29%	16.40%
MREO	42 Neutral	$55.95M	-11.73	-74.85%	―	―	―

Verastem Corporate Events

Verastem Highlights AVMAPKI FAKZYNJA Strategy and Pipeline Risks

On March 4, 2026, Verastem posted an updated corporate presentation outlining its strategy around AVMAPKI FAKZYNJA co-pack for KRAS mutant recurrent low-grade serous ovarian cancer and its broader RAS/MAPK-driven oncology pipeline, including multiple ongoing RAMP clinical trials and its partnered VS-7375 program. The materials underscore both the company’s commercial ambitions and the substantial development, regulatory, commercialization, financing, and competitive risks it faces, while also highlighting its use of non-GAAP operating expense metrics to present operating performance to investors.

The presentation details how Verastem’s growth prospects hinge on successfully confirming prior clinical results, expanding approved indications for AVMAPKI FAKZYNJA, executing collaborations with Pfizer, Chugai, GenFleet, and Secura Bio, and meeting post-marketing and regulatory commitments in the U.S. Highly detailed risk disclosures emphasize uncertainties around trial enrollment, safety, reimbursement, intellectual property, and the impact of U.S. healthcare policy and FDA resourcing, signaling a high-risk, high-reward profile for stakeholders evaluating the company’s future.

The most recent analyst rating on (VSTM) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Verastem stock, see the VSTM Stock Forecast page.

Verastem Extends Cash Runway and Highlights 2025 Results

On February 4, 2026, Verastem Oncology reported preliminary, unaudited 2025 financial and clinical results, highlighting an estimated $17.5 million in fourth-quarter 2025 net product revenue and $30.9 million for full-year 2025 from its newly launched AVMAPKI FAKZYNJA CO-PACK, which received U.S. FDA approval in May 2025. The company ended 2025 with $205 million in cash, cash equivalents, and investments, or $234 million on a pro forma basis after the January 25, 2026 exercise of all remaining cash warrants that added $29.4 million, and it now expects its cash runway to extend into the first half of 2027 while anticipating that its low-grade serous ovarian cancer commercial franchise will become self-sustaining by the second half of 2026. Operationally, Verastem outlined 2026 priorities centered on maximizing U.S. uptake and pursuing geographic expansion of AVMAPKI FAKZYNJA CO-PACK, progressing confirmatory and label-expansion trials in LGSOC, and advancing its RAS/MAPK-focused pipeline, including an actively enrolling global Phase 1/2 program for VS-7375 in KRAS G12D solid tumors and combination studies in pancreatic and lung cancer. Updated clinical data from Japan’s RAMP201J trial showed encouraging response and disease control rates in both KRAS-mutated and KRAS wild-type recurrent LGSOC, and prior data from the RAMP 205 study in front-line metastatic pancreatic cancer showed an 83% overall response rate in the initial 12-patient cohort, positioning Verastem as a growing commercial-stage oncology player with multiple near- and mid-term clinical catalysts that could strengthen its competitive standing in targeted cancer therapeutics.

The most recent analyst rating on (VSTM) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Verastem stock, see the VSTM Stock Forecast page.

Verastem updates oncology strategy in new corporate presentation

On January 8, 2026, Verastem, Inc. updated and posted its corporate presentation, highlighting its strategy around AVMAPKI FAKZYNJA CO-PACK, which is approved for adult patients with KRAS mutant-type recurrent low-grade serous ovarian cancer, and outlining plans to potentially expand its indication beyond KRAS mutation status based on ongoing and planned trials such as RAMP 201 and RAMP 301. The presentation also detailed the company’s broader clinical and partnership pipeline, including a Phase 1/2a study with GenFleet for VS-7375, while emphasizing significant development, regulatory, commercialization, financing, intellectual property, competitive, and operational risks that could materially affect clinical timelines, market uptake, and Verastem’s ability to sustain its oncology business and meet its strategic objectives.

The most recent analyst rating on (VSTM) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Verastem stock, see the VSTM Stock Forecast page.

Verastem Shifts Focus to KRAS G12D and Pancreatic Programs

On December 29, 2025, Verastem announced it will discontinue the RAMP 203 Phase 1/2 clinical trial in advanced KRAS G12C-mutated non-small cell lung cancer, halting further enrollment while allowing currently enrolled patients to continue treatment at investigators’ discretion. Interim data as of November 26, 2025, showed that doublet and triplet combinations of avutometinib with LUMAKRAS and defactinib produced meaningful response rates and generally manageable safety, but next-generation KRAS G12C inhibitors have raised the efficacy bar, prompting Verastem to reallocate resources toward the clinical development of VS-7375, its oral KRAS G12D (ON/OFF) inhibitor that has shown high response rates in KRAS G12D NSCLC, and to its RAMP 205 pancreatic cancer program, signaling a strategic shift to indications and assets with greater perceived commercial and clinical impact.

The most recent analyst rating on (VSTM) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Verastem stock, see the VSTM Stock Forecast page.

Verastem streamlines leadership team amid strategic transition

On December 19, 2025, Verastem’s chief operating officer Matthew Ros separated from the company under a negotiated separation agreement that provides for nine months of salary continuation, COBRA-related support and a pro-rated bonus, as the biopharma group streamlines its operational structure and redistributes his responsibilities across the executive team. The move follows a December 15, 2025 leadership reshuffle in which long-time board member John Johnson was elevated to chairman and lead director Michael Kauffman was appointed president of development, formalizing a strategic transition meant to support the commercial rollout of AVMAPKI FAKZYNJA CO-PACK and the advancing clinical pipeline, including completion of additional patient enrollment in the RAMP 301 Phase 3 confirmatory trial in recurrent LGSOC, a key study for securing and potentially broadening the product’s market positioning.

The most recent analyst rating on (VSTM) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Verastem stock, see the VSTM Stock Forecast page.