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Verastem
(NASDAQ:VSTM)
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Rating:56Neutral
Price Target:
$5.00
▼(-24.01% Downside)
Action:Reiterated
Date:07/10/26
The score is held back primarily by weak financial quality—large ongoing losses and significant cash burn despite strong revenue growth—creating elevated execution and financing risk. Technicals are a clear positive with bullish momentum and price strength versus key moving averages. Earnings-call updates add support via constructive commercial and pipeline progress, while valuation is difficult to anchor given negative earnings and no dividend yield.
Positive Factors
Commercial traction & revenue growth
Consistent quarter-over-quarter product revenue growth and an expanding prescriber base (>400) indicate durable commercial adoption for the LGSOC co-pack. As prescriber coverage and patient starts grow, revenue visibility and the ability to scale commercial operations improve, supporting medium-term self-sustainability of launch economics.
Negative Factors
High cash burn and limited runway
Persistent, sizable negative operating and free cash flow (~-$150.9M TTM) creates a material financing need within roughly a year. This elevates execution risk: management must secure nondilutive funding, accelerate self-sustaining co-pack revenues, or dilute shareholders to sustain clinical programs and commercialization beyond H1 2027.
Read all positive and negative factors
Positive Factors
Negative Factors
Commercial traction & revenue growth
Consistent quarter-over-quarter product revenue growth and an expanding prescriber base (>400) indicate durable commercial adoption for the LGSOC co-pack. As prescriber coverage and patient starts grow, revenue visibility and the ability to scale commercial operations improve, supporting medium-term self-sustainability of launch economics.
Read all positive factors
Verastem (VSTM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$485.94M
Dividend YieldN/A
Average Volume (3M)2.89M
Price to Earnings (P/E)―
Beta (1Y)1.11
Revenue Growth395.85%
EPS Growth21.44%
CountryUS
Employees102
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-2.50
Shares Outstanding87,873,640
10 Day Avg. Volume2,840,699
30 Day Avg. Volume2,887,640
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 Cap0.43
Enterprise Value/Revenue4.21
Enterprise Value/Gross Profit5.03
Enterprise Value/Ebitda-1.09
Forecast
1Y Price Target
$15.00Price Target Upside127.96% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)-1.56
Revenue Forecast (FY)$102.29M
Verastem Business Overview & Revenue Model
Company Description
Verastem, Inc. is an emerging biopharmaceutical company dedicated to the creation and commercialization of innovative therapeutic agents for cancer treatment. A primary asset in its pipeline is VS-6766, a novel dual RAF/MEK inhibitor that operates...
How the Company Makes Money
Verastem’s revenue model is primarily tied to (1) potential future product sales and (2) collaboration/partnering economics, with current operations largely funded by financing activities rather than recurring commercial revenue.
1) Potential fut...
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
28
Negative
Balance Sheet
46
Neutral
Cash Flow
20
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 49.59M | 30.91M | 10.00M | 0.00 | 2.60M | 2.05M |
| Gross Profit | 41.53M | 25.62M | 10.00M | 0.00 | 2.60M | 2.05M |
| EBITDA | -191.95M | -207.60M | -125.86M | -83.17M | -71.56M | -61.16M |
| Net Income | -193.96M | -209.47M | -130.64M | -87.37M | -73.81M | -71.20M |
Balance Sheet | ||||||
| Total Assets | 227.81M | 246.44M | 101.54M | 149.72M | 95.05M | 108.66M |
| Cash, Cash Equivalents and Short-Term Investments | 181.68M | 204.99M | 88.82M | 137.13M | 87.89M | 100.26M |
| Total Debt | 85.47M | 76.86M | 42.25M | 41.56M | 27.07M | 3.18M |
| Total Liabilities | 146.03M | 189.25M | 130.43M | 92.34M | 47.66M | 21.10M |
| Stockholders Equity | 81.78M | 57.20M | -28.89M | 57.37M | 47.39M | 87.56M |
Cash Flow | ||||||
| Free Cash Flow | -152.29M | -137.51M | -104.80M | -86.46M | -63.67M | -53.70M |
| Operating Cash Flow | -150.95M | -137.51M | -104.77M | -86.46M | -63.67M | -53.50M |
| Investing Cash Flow | -25.64M | -9.62M | 59.97M | -44.45M | 66.19M | 87.00K |
| Financing Cash Flow | 224.57M | 263.31M | 54.78M | 134.19M | 51.78M | 6.88M |
Verastem Technical Analysis
Positive
6.58
Price Trends
4.45
Positive
5.11
Positive
6.67
Negative
Market Momentum
0.23
Negative
71.98
Negative
97.26
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 4.27, above the 50-day MA of 4.45, and below the 200-day MA of 6.67, indicating a neutral trend. The MACD of 0.23 indicates Negative momentum. The RSI at 71.98 is Negative, neither overbought nor oversold. The STOCH value of 97.26 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 | $429.36M | -2.14 | -121.71% | ― | ― | ― | |
56 Neutral | $485.94M | -2.21 | -486.41% | ― | 395.85% | 21.44% | |
52 Neutral | $399.34M | -2.32 | -57.01% | ― | ― | -28.75% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $714.12M | -51.30 | -12.84% | ― | ― | 40.38% | |
46 Neutral | $90.93M | -1.96 | -95.50% | ― | -10.71% | 28.59% | |
46 Neutral | $53.47M | -1.51 | -81.25% | ― | ― | 28.17% |
* Healthcare Sector Average
VSTM
Verastem
5.53
0.57
11.49%
CRDF
Cardiff Oncology
1.33
-2.80
-67.80%
MREO
Mereo Biopharma Group Plc
0.34
-1.39
-80.52%
MNPR
Monopar Therapeutics Inc
106.60
62.87
143.77%
SLN
Silence Therapeutics
9.09
2.81
44.75%
AVIR
Atea Pharmaceuticals
4.99
1.23
32.71%
Verastem Corporate Events
Business Operations and StrategyProduct-Related Announcements
Verastem Advances VS-7375 with Promising Early Trial Data
Positive
Jun 23, 2026
On June 23, 2026, Verastem reported preliminary data from its ongoing TARGET-D 101 Phase 1/2 trial of VS-7375, an investigational oral KRAS G12D (ON/OFF) inhibitor, in patients with advanced KRAS G12D-mutated solid tumors. The company also posted ...
Business Operations and StrategyProduct-Related Announcements
Verastem Advances VS-7375 Into Phase 2 Pancreatic Trial
Positive
Jun 17, 2026
On June 17, 2026, Verastem reported updated Phase 1b/2a data from its RAMP 205 trial testing avutometinib plus defactinib with gemcitabine and nab-paclitaxel as first-line therapy for metastatic pancreatic ductal adenocarcinoma. Among 29 patients ...
Executive/Board ChangesShareholder Meetings
Verastem Shareholders Back Board, Executive Pay and Plans
Positive
May 26, 2026
At its annual meeting of stockholders held on May 21, 2026, in Needham, Massachusetts, Verastem, Inc. shareholders elected Class II directors Michael Bailey, Brian Stuglik and Karin Tollefson to serve until the 2029 annual meeting. Investors also ...
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...
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.