Verastem (VSTM) AI Stock Analysis

• Market Cap: $511.42M
• Dividend Yield: N/A
• Average Volume (3M): 1.79M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: 33.79%
• EPS Growth: -26.37%
• Country: US
• Employees: 78
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -1.35
• Shares Outstanding: 75,319,800
• 10 Day Avg. Volume: 2,131,414
• 30 Day Avg. Volume: 1,789,994
• PEG Ratio: 0.19
• Price to Book (P/B): -6.39
• Price to Sales (P/S): 18.46
• P/FCF Ratio: -1.76
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 44.68
• Enterprise Value/Gross Profit: 53.07
• Enterprise Value/Ebitda: -2.50
• 1Y Price Target: $15.60
• Price Target Upside: 129.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): -1.83
• Revenue Forecast (FY): $106.33M

• Rating: 48 Neutral
• Price Target: $6.50 ▼(-4.27% Downside)

The score is held down primarily by weak financial performance (large ongoing losses, heavy cash burn, and negative equity with higher debt). Technicals also reflect recent downside momentum (below key moving averages and negative MACD). These are partly offset by a positive earnings-call outlook driven by strong initial commercial launch metrics, pipeline progress, and cash runway into 2H 2026.

Positive Factors

Commercial launch traction

Achieving $11.2M in net product revenue in the first full post-approval quarter signals durable commercial validation: physician adoption across academic and community settings supports scalable sales infrastructure, recurring prescriptions, and a growing revenue base to fund further rollout and lifecycle activities.

Broad payer coverage

Greater than 80% payer coverage materially reduces reimbursement friction for an oncology specialty product, supporting continued prescription uptake and revenue predictability. Durable access across commercial and Medicare plans strengthens competitive positioning versus therapies with limited coverage.

Promising KRAS G12D asset

High response signals for VS-7375 suggest a potentially best-in-class KRAS G12D program. A differentiated targeted therapy with reproducible responses across indications can drive durable value through label expansion, strategic partnerships, and commercial opportunity in hard-to-treat solid tumors.

Negative Factors

Heavy cash burn

Sustained operating cash outflows of roughly $132.7M TTM create ongoing dependence on external capital. Over months, this constrains discretionary R&D and commercial investments, forces dilutive financings or debt use, and increases execution risk if fundraising windows narrow or markets shift.

Elevated leverage and negative equity

Negative shareholders' equity and materially higher debt reduce financial flexibility and heighten refinancing and covenant risk. In a cyclical or delay environment, leverage can limit strategic options, raise funding costs, and amplify downside for shareholders over the medium term.

Clinical execution & enrollment risk

Recommendations to add patients and the discontinuation of RAMP‑203 highlight execution and competitive-efficacy risks. Delayed enrollments and shifting resources raise trial timing and cost uncertainty, potentially postponing regulatory milestones and commercial expansion critical to long-term revenue realization.

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 is improving (TTM ~$13.4M; positive gross profit), but losses and cash burn remain very large (TTM EBIT ~-$160.2M; net income ~-$241.1M; operating/FCF ~-$132.7M). Balance-sheet risk is elevated with negative equity (~-$15.5M) and sharply higher debt (~$89.5M TTM).

Income Statement

TTM (Trailing-Twelve-Months) revenue rebounded to ~$13.4M with extremely strong growth versus the prior annual period (~$10.0M), and gross profit is also positive. However, profitability remains deeply challenged: TTM EBIT is about -$160.2M and net income about -$241.1M, indicating the cost base is still far ahead of the current revenue scale. Overall, the top-line trajectory is improving, but losses remain substantial and persistent across years.

Balance Sheet

The balance sheet shows elevated financial risk: TTM stockholders’ equity is negative (~-$15.5M), which reduces flexibility and can amplify volatility for shareholders. Debt has increased meaningfully (TTM total debt ~$89.5M vs. ~$42.3M in the latest annual period), and while total assets are higher (~$176.9M TTM), the combination of rising leverage and negative equity is a key weakness. Prior years showed positive equity, so the deterioration is notable.

Cash Flow

Cash burn remains heavy and consistent: TTM operating cash flow is about -$132.7M and free cash flow is also about -$132.7M. While free cash flow growth is positive in the TTM dataset versus the prior annual period, the absolute level of negative cash generation is still large, implying continued reliance on external funding. The main strength is that cash flow and earnings move in the same direction (both negative), but the magnitude of outflows is the central concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.38M	10.00M	0.00	2.60M	2.05M	88.52M
Gross Profit	11.26M	10.00M	0.00	2.60M	2.05M	54.77M
EBITDA	-238.93M	-125.86M	-83.17M	-71.56M	-61.16M	-50.48M
Net Income	-241.11M	-130.64M	-87.37M	-73.81M	-71.20M	-67.73M
Balance Sheet
Total Assets	176.85M	101.54M	149.72M	95.05M	108.66M	154.35M
Cash, Cash Equivalents and Short-Term Investments	137.71M	88.82M	137.13M	87.89M	100.26M	141.23M
Total Debt	89.48M	42.25M	41.56M	27.07M	3.18M	22.54M
Total Liabilities	192.38M	130.43M	92.34M	47.66M	21.10M	39.08M
Stockholders Equity	-15.53M	-28.89M	57.37M	47.39M	87.56M	115.27M
Cash Flow
Free Cash Flow	-132.65M	-104.80M	-86.46M	-63.67M	-53.70M	-33.54M
Operating Cash Flow	-132.65M	-104.77M	-86.46M	-63.67M	-53.50M	-33.51M
Investing Cash Flow	-8.28M	59.97M	-44.45M	66.19M	87.00K	-47.36M
Financing Cash Flow	165.46M	54.78M	134.19M	51.78M	6.88M	69.63M

Verastem Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.79
• 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 6.79 is below the 20-day moving average (MA) of 7.51, below the 50-day MA of 8.61, and below the 200-day MA of 7.54, indicating a bearish trend. The MACD of -0.53 indicates Positive momentum. The RSI at 33.44 is Neutral, neither overbought nor oversold. The STOCH value of 10.12 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	58 Neutral	$276.57M	-1.94	-37.98%	―	―	14.33%
MNPR	53 Neutral	$465.11M	-20.09	-26.54%	―	―	-73.48%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
VSTM	48 Neutral	$511.42M	-1.55	-2888.70%	―	33.79%	-26.37%
CRDF	48 Neutral	$189.28M	-3.52	-102.71%	―	-27.29%	16.40%
SLN	47 Neutral	$277.26M	-3.33	―	―	―	―
MREO	44 Neutral	$114.01M	―	-69.98%	―	―	―

Verastem Corporate Events

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.

Verastem Announces Public Offering to Raise $96.9 Million

On November 13, 2025, Verastem, Inc. entered into an underwriting agreement with Jefferies LLC and Guggenheim Securities, LLC for a public offering of its common stock and pre-funded warrants, expecting to raise approximately $96.9 million. The offering, which includes an option for underwriters to purchase additional shares, is set to close on November 17, 2025, and is part of Verastem’s strategy to strengthen its financial position.

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.

Verastem Reports Strong Q3 Revenue and Pipeline Progress

On November 4, 2025, Verastem Oncology reported its third-quarter financial results and business updates. The company achieved net product revenue of $11.2 million from the launch of AVMAPKI FAKZYNJA CO-PACK, indicating strong market adoption. Verastem is advancing its clinical pipeline, particularly the KRAS G12D inhibitor VS-7375, which showed promising preliminary safety and efficacy results. The company is also expanding its trials, including a combination study with cetuximab for advanced solid tumors, and anticipates several key data readouts in 2026.

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.

Verastem Reports Promising Phase 1/2a Trial Data

On October 23, 2025, Verastem announced preliminary data from its ongoing Phase 1/2a trial of VS-7375, an oral KRAS G12D inhibitor, showing promising safety and anti-tumor activity in patients with advanced KRAS G12D mutant solid tumors. The trial cleared initial monotherapy doses without dose-limiting toxicities and observed tumor reductions in most patients. Verastem has also started enrolling patients for a combination cohort with cetuximab and plans to report further updates in 2026.

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 Announces Promising Data from VS-7375 Study

On October 19, 2025, Verastem announced updated data from a Phase 1/2 study of VS-7375, conducted by GenFleet Therapeutics in China, targeting advanced KRAS G12D mutant pancreatic ductal adenocarcinoma (PDAC). The study showed a 41% overall response rate and a 96.7% disease control rate among heavily pre-treated patients, with a manageable safety profile. These results, presented at the European Society for Medical Oncology 2025, highlight the potential of KRAS G12D inhibition in treating difficult-to-treat cancers and support Verastem’s ongoing clinical trials in the U.S.

The most recent analyst rating on (VSTM) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Verastem stock, see the VSTM Stock Forecast page.