Verastem Inc (VSTM)
NASDAQ:VSTM
Top Page
Verastem
(NASDAQ:VSTM)
Select Model
Select Model
Rating:49Neutral
Price Target:
$5.50
▼(-2.83% Downside)
Action:ReiteratedDate:03/25/26
The score is held back primarily by weak financial quality—large losses, worsening cash burn, and meaningful leverage—despite improving revenue and a repaired equity position. Technicals add downside pressure with the stock below all key moving averages and negative MACD, while the earnings call provides a partial offset due to strong early launch execution, defined milestones, and runway into H1 2027. Valuation is not supportive given negative earnings and no dividend.
Positive Factors
Commercial launch traction
Early FDA approval and a May 2025 commercial launch produced tangible uptake and created a durable go-to-market foundation. Initial adoption metrics (nearly 300 prescribers, academic penetration, co-pay take-up) indicate product-market fit and distribution infrastructure that can sustain sales growth and channel relationships over the next 2–3 years.
Negative Factors
High and worsening cash burn
Steep, increasing operating cash outflows signal structural cash consumption driven by simultaneous commercial launch and heavy R&D. Persistent negative operating cash flow raises the probability of future financings or program trade-offs, constraining strategic flexibility and pressuring margins over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Commercial launch traction
Early FDA approval and a May 2025 commercial launch produced tangible uptake and created a durable go-to-market foundation. Initial adoption metrics (nearly 300 prescribers, academic penetration, co-pay take-up) indicate product-market fit and distribution infrastructure that can sustain sales growth and channel relationships over the next 2–3 years.
Read all positive factors
Verastem (VSTM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$466.40M
Dividend YieldN/A
Average Volume (3M)2.03M
Price to Earnings (P/E)―
Beta (1Y)0.85
Revenue Growth33.79%
EPS Growth-26.37%
CountryUS
Employees78
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.39
Shares Outstanding87,835,106
10 Day Avg. Volume1,756,438
30 Day Avg. Volume2,032,832
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 Cap0.66
Enterprise Value/Revenue9.96
Enterprise Value/Gross Profit11.88
Enterprise Value/Ebitda-1.42
Forecast
1Y Price Target
$16.43Price Target Upside190.28% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)-1.59
Revenue Forecast (FY)$115.97M
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:Mar 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Neutral
The call presented meaningful commercial and clinical progress—an early, ahead-of-schedule FDA approval, initial revenues ($30.9M launch-period; $17.5M Q4), expanding prescriber base (~300 prescribers), strong payer access metrics, promising RAMP and VS-7375 early signals, and a pro forma cash balance (~$234.4M) with runway into H1 2027. Offsetting these positives are the NCCN guideline omission for KRAS wild-type patients, sizable year-over-year increases in absolute non-GAAP losses (+35.8% Q4; +51.9% full year), continued high R&D/SG&A spend, limited runway beyond H1 2027 without additional financing, some payer pushback on off-label use, and early-stage VS-7375 data with short follow-up. Overall the company appears to be executing a disciplined commercial launch while advancing a promising pipeline, but material risks and near-term funding/clinical timeline uncertainties persist.Positive Updates
FDA Approval Ahead of PDUFA and Commercial Launch
Received FDA approval for the first treatment specifically for KRAS-mutated recurrent LGSOC nearly two months ahead of the PDUFA date, enabling a commercial launch beginning May 2025.
Negative Updates
NCCN Guideline Update Excludes KRAS Wild-Type
Updated NCCN ovarian cancer guidelines did not expand the recommendation to include KRAS wild-type recurrent LGSOC, representing a disappointment for patients without KRAS mutations and a potential headwind for guideline-based adoption.
Read all updates
Q4-2025 Updates
Positive
Negative
FDA Approval Ahead of PDUFA and Commercial Launch
Received FDA approval for the first treatment specifically for KRAS-mutated recurrent LGSOC nearly two months ahead of the PDUFA date, enabling a commercial launch beginning May 2025.
Read all positive updates
Company Guidance
On the call Verastem reiterated 2026 priorities and provided concrete guidance and milestones alongside detailed FY2025 results: net product revenue of $30.9M for the May–Dec 2025 launch period (including $17.5M in Q4), cost of sales $2.6M in Q4/$4.6M FY, R&D $31.7M in Q4/$114.6M FY, SG&A $24.4M in Q4/$81.1M FY, and non‑GAAP adjusted net loss of $39.8M (‑$0.48/diluted) in Q4 and $163.1M (‑$2.35/diluted) for the year (versus $29.3M/‑$0.60 Q4 2024 and $107.4M/‑$3.01 FY2024); cash, cash equivalents and investments were $205M (pro forma $234.4M after warrant exercises) providing runway into the first half of 2027 and management expects the LGSOC franchise to be self‑sustaining in H2 2026 with SG&A roughly flat quarter‑to‑quarter in 2026. Clinical and timing guidance included RAMP 301 enrollment complete with topline primary analysis expected mid‑2027, a RAMP 205 expansion update in Q2 2026 (83% confirmed response in 10/12 patients reported at ASCO), RAMP 201J (n=16) showing investigator‑assessed ORR 57% in KRAS‑mutant and 22% in KRAS wild‑type, and VS‑7375 program updates (first patient dosed June 2025; PK/exposure achieved ≥600 mg with 900 mg cleared and 1,200 mg under evaluation; 600 mg chosen by partner in China; 600 mg combo with cetuximab cleared) with preliminary 101 data planned H1 2026 and fuller go‑forward‑dose data H2 2026; safety signals reported to date: no drug‑related LFT abnormalities and no drug‑related Grade ≥2 neutropenia. Commercial launch metrics/guidance: nearly 300 prescribers through February, >50% of prescriptions from academic centers, ~60% of commercially eligible patients using the co‑pay program, prescription fill times 12–14 days, top accounts ~75% introduced/adopted, GynOnc/MedOnc split ~60/40, and ~1,800 scientific exchanges plus >700 educational engagements through year‑end.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
Neutral
5.66
Price Trends
5.80
Negative
7.06
Negative
7.40
Negative
Market Momentum
-0.10
Negative
51.50
Neutral
67.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VSTM, the sentiment is Neutral. The current price of 5.66 is above the 20-day moving average (MA) of 5.42, below the 50-day MA of 5.80, and below the 200-day MA of 7.40, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 51.50 is Neutral, neither overbought nor oversold. The STOCH value of 67.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $451.74M | -1.84 | -46.34% | ― | ― | 14.33% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $466.40M | ― | -1849.88% | ― | 33.79% | -26.37% | |
46 Neutral | $108.02M | -4.09 | -82.00% | ― | -27.29% | 16.40% | |
45 Neutral | $375.30M | -35.28 | -0.04% | ― | ― | -73.48% | |
44 Neutral | $270.65M | -6.10 | -300.94% | ― | ― | ― | |
42 Neutral | $52.35M | -1.59 | -83.02% | ― | ― | ― |
* Healthcare Sector Average
VSTM
Verastem
5.66
0.70
14.11%
CRDF
Cardiff Oncology
1.59
-1.22
-43.42%
MREO
Mereo Biopharma Group Plc
0.32
-1.81
-84.98%
MNPR
Monopar Therapeutics Inc
56.08
18.06
47.50%
SLN
Silence Therapeutics
6.01
3.11
107.07%
AVIR
Atea Pharmaceuticals
5.71
2.71
90.33%
Verastem Corporate Events
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...
Business Operations and StrategyFinancial DisclosuresProduct-Related Announcements
Verastem Extends Cash Runway and Highlights 2025 Results
Positive
Feb 4, 2026
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 laun...
Business Operations and StrategyProduct-Related Announcements
Verastem updates oncology strategy in new corporate presentation
Neutral
Jan 8, 2026
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 ...
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.