Verastem (VSTM)
NASDAQ:VSTM
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Verastem
(NASDAQ:VSTM)
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Rating:47Neutral
Price Target:
$5.50
▼(-16.41% Downside)
Action:ReiteratedDate:05/08/26
The score is held back primarily by weak financial performance (large net losses and rising cash burn despite improved revenue) and a technically weak price trend (trading below major moving averages). Earnings call updates add some support via improving commercialization metrics, pipeline progress, and stated runway into H1 2027, but ongoing losses and financing/execution risk remain material; valuation is difficult to support with a negative P/E and no dividend yield.
Positive Factors
Improving commercial revenue trajectory
Sustained product revenue growth and a rebound in 2025 demonstrate that Verastem is beginning to commercialize its lead franchise. Durable top-line expansion provides a foundation to scale sales infrastructure, fund clinical programs from product receipts, and reduce sole reliance on financings if growth persists.
Negative Factors
Persistent and rising cash burn
Worsening operating cash flow indicates structural negative free cash generation while the company invests in launch and multiple clinical programs. Continued high burn raises financing frequency and dilution risk, constrains strategic optionality, and pressures capital allocation over the next 2–6 months if revenue ramps stall.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving commercial revenue trajectory
Sustained product revenue growth and a rebound in 2025 demonstrate that Verastem is beginning to commercialize its lead franchise. Durable top-line expansion provides a foundation to scale sales infrastructure, fund clinical programs from product receipts, and reduce sole reliance on financings if growth persists.
Read all positive factors
Verastem (VSTM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$497.19M
Dividend YieldN/A
Average Volume (3M)2.15M
Price to Earnings (P/E)―
Beta (1Y)0.97
Revenue Growth209.14%
EPS Growth11.31%
CountryUS
Employees78
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-3.09
Shares Outstanding87,842,896
10 Day Avg. Volume1,995,927
30 Day Avg. Volume2,152,964
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)9.35
Price to Sales (P/S)17.31
P/FCF Ratio-3.89
Enterprise Value/Market Cap0.50
Enterprise Value/Revenue8.07
Enterprise Value/Gross Profit9.62
Enterprise Value/Ebitda-1.15
Forecast
1Y Price Target
$16.29Price Target Upside147.50% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)-1.69
Revenue Forecast (FY)$114.87M
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-activat...
How the Company Makes Money
Verastem generates revenue primarily through collaboration and licensing arrangements rather than broad, recurring product sales (as its lead assets have historically been in development). Key revenue streams include (1) upfront payments and optio...
Verastem Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Neutral
The call balanced encouraging commercial and R&D progress with near-term operational and financial challenges. Highlights include steady product revenue growth ($18.7M in Q1; nearly $50M to date), expanding prescriber base (>400), improved PK/tolerability and progression of the 7375 Target-D program into Phase II registration-directed trials across PDAC, NSCLC and CRC (900 mg go-forward dose), and a cash position of $181.7M with runway into H1 2027. Lowlights include seasonal/access headwinds and early discontinuations reducing short-term refill volumes, high R&D and SG&A relative to current revenue leading to continued non-GAAP net losses (~$42.7M), immature duration/refill metrics, and practical dosing/formulation constraints at higher VS-7375 doses. Overall, positives (pipeline advancement, reimbursement and commercial actions, and encouraging VS-7375 data) are significant but offset by meaningful execution and funding risks in the near term.Positive Updates
Commercial Launch Momentum and Revenue
Q1 2026 net product revenue of $18.7M and nearly $50M in total net product revenue to date; steady quarter-over-quarter growth since the May 2025 launch and management expects an increase from Q1 to Q2. Active prescribers expanded to more than 400 through April with a 60/40 split between GynOncs and MedOncs.
Negative Updates
Seasonal and Access Headwinds Impacting Q1
Q1 impacted by seasonal headwinds—insurance turnover, reverifications and severe weather—which reduced new patient starts and refills and produced refill timing issues (some patients temporarily placed on free drug while reauthorization resolved).
Read all updates
Q1-2026 Updates
Positive
Negative
Commercial Launch Momentum and Revenue
Q1 2026 net product revenue of $18.7M and nearly $50M in total net product revenue to date; steady quarter-over-quarter growth since the May 2025 launch and management expects an increase from Q1 to Q2. Active prescribers expanded to more than 400 through April with a 60/40 split between GynOncs and MedOncs.
Read all positive updates
Company Guidance
The company reiterated specific financial and operational guidance: Q1 2026 net product revenue was $18.7M (nearly $50M total to date) with product cost of sales $2.8M, R&D $38.2M and SG&A $22.3M, producing a non‑GAAP adjusted net loss of $42.7M (‑$0.43/sh) vs. $42.9M (‑$0.79/sh) in Q1 2025; cash, cash equivalents and investments were $181.7M, which management said provides runway into H1 2027. They expect the LGSOC CO‑PACK franchise to be self‑sustaining in H2 2026 (CO‑PACK revenues funding commercial ops and ongoing trials), SG&A to remain roughly flat quarter‑to‑quarter through 2026, and noted that the increase in commercial spend from pre‑commercial levels has been roughly $10–15M/quarter while A+ related R&D has run about $10–15M/quarter. Commercial metrics and launch guidance included >400 unique prescribers through April (60/40 GynOnc/MedOnc split), ~50/50 commercial/Medicare payer mix, ~65% of commercially eligible patients using the Verastem Cares co‑pay program (average co‑pay < $30), time‑to‑fill for initial scripts of 12–14 days, and steady new patient starts with a rebound since January. Pipeline guidance: VS‑7375 is being evaluated up to 1,200 mg (900 mg appears go‑forward with PK at/above target and >20 U.S. patients dosed at 900 mg); three Phase II registration‑directed Target‑D trials (PDAC 201, NSCLC 202, CRC 203) with BICR ORR primary endpoints and DOR key secondary are planned (first patients expected mid‑year), a Target‑D 101 safety/PK update is expected in H1, and an update on RAMP‑205 (1L PDAC) is expected before end of Q2; management referenced typical accelerated‑approval benchmarks of roughly 25–30% ORR and ~6 months DOR.Verastem Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
46
Neutral
Cash Flow
22
Negative
| 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
Positive
6.58
Price Trends
5.80
Positive
6.94
Negative
7.44
Negative
Market Momentum
0.13
Negative
64.91
Neutral
83.75
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VSTM, the sentiment is Positive. The current price of 6.58 is above the 20-day moving average (MA) of 5.55, above the 50-day MA of 5.80, and below the 200-day MA of 7.44, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 64.91 is Neutral, neither overbought nor oversold. The STOCH value of 83.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VSTM.
Verastem Risk Analysis
Verastem disclosed 67 risk factors in its most recent earnings report. Verastem reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Verastem Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
57 Neutral | $441.38M | -1.55 | -46.34% | ― | ― | 2.37% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $328.28M | -4.16 | -165.72% | ― | ― | ― | |
48 Neutral | $417.79M | -21.01 | -0.04% | ― | ― | 44.89% | |
47 Neutral | $497.19M | -3.56 | -486.41% | ― | 209.14% | 11.31% | |
46 Neutral | $109.38M | -6.51 | -82.00% | ― | -13.30% | 28.02% | |
43 Neutral | $38.19M | -2.26 | -83.02% | ― | ― | 9.75% |
* Healthcare Sector Average
VSTM
Verastem
5.66
-1.51
-21.06%
CRDF
Cardiff Oncology
1.60
-1.06
-39.85%
MREO
Mereo Biopharma Group Plc
0.24
-2.17
-90.04%
MNPR
Monopar Therapeutics Inc
62.43
23.01
58.37%
SLN
Silence Therapeutics
6.95
3.25
87.84%
AVIR
Atea Pharmaceuticals
5.54
2.82
103.68%
Verastem Corporate Events
Business Operations and StrategyFinancial Disclosures
Verastem Updates Strategy for RAS/MAPK Oncology Pipeline
Neutral
May 7, 2026
On May 7, 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 a broader pipeline of RAS/MAPK pathway-targeted programs. The ma...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Verastem Highlights AVMAPKI FAKZYNJA Strategy and Pipeline Risks
Neutral
Mar 4, 2026
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 multi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.