Verastem (NASDAQ:VSTM) Posts Earnings Results, Misses Expectations By $0.25 EPS

Verastem (NASDAQ:VSTM) announced its quarterly earnings results on Thursday. The biopharmaceutical company reported ($0.72) EPS for the quarter, missing analysts’ consensus estimates of ($0.47) by ($0.25), FiscalAI reports. The firm had revenue of $24.01 million for the quarter, compared to analyst estimates of $26.57 million. Verastem had a negative net margin of 231.59% and a negative return on equity of 467.49%.

Here are the key takeaways from Verastem’s conference call:

• Third-quarter net product revenue was $24 million, up 114% year over year. Refills were strong, but new patient starts moderated after substantial Q2 growth; management said quarterly starts can fluctuate and expects continued growth as physician adoption broadens.
• The FDA accepted the new blister-pack NDA for priority review, with a February 2027 PDUFA date. If approved, the presentation would reduce pill burden, eliminate refrigeration, and make dosing and storage easier—changes the company believes could support adherence and time on therapy.
• Verastem reported encouraging early VS-7375 results in KRAS G12D cancers, including a 50% confirmed response rate in second-line pancreatic cancer, as well as activity in colorectal and lung cancer. The company also highlighted a manageable safety profile, while noting the data remain early and based on relatively small patient groups.
• The company reached FDA agreement on its first-line pancreatic cancer Phase III trial, which it plans to start by year-end 2026; it aims to begin first-line colorectal and lung Phase III trials in the first half of 2027. The pancreatic trial includes response rate and progression-free survival as dual primary endpoints, but the company said accelerated approval based on response rate is not assured.
• Verastem raised about $250 million in gross proceeds in October, bringing pro forma quarter-end cash to $422.8 million and extending its expected runway into the first half of 2028. Adjusted net loss widened to $72.8 million from $39.1 million a year earlier as the company continued investing in its clinical program.

Verastem Trading Down 4.8%

Shares of NASDAQ VSTM traded down $0.47 during trading on Thursday, reaching $9.38. The company had a trading volume of 3,032,681 shares, compared to its average volume of 2,577,388. The stock has a market cap of $849.45 million, a P/E ratio of -3.53 and a beta of 0.45. The company’s fifty day moving average price is $8.32 and its 200-day moving average price is $6.22. The company has a quick ratio of 2.22, a current ratio of 2.25 and a debt-to-equity ratio of 1.48. Verastem has a 12 month low of $3.43 and a 12 month high of $10.82.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the stock. Cantor Fitzgerald reiterated an “overweight” rating on shares of Verastem in a report on Monday, September 28th. Citigroup reissued a “buy” rating on shares of Verastem in a report on Thursday, October 8th. Guggenheim set a $12.00 price target on shares of Verastem and gave the company a “buy” rating in a research report on Friday, August 7th. Royal Bank Of Canada restated an “outperform” rating and issued a $19.00 price target (up from $14.00) on shares of Verastem in a research report on Thursday, October 15th. Finally, Wall Street Zen raised shares of Verastem from a “sell” rating to a “hold” rating in a research note on Sunday, September 27th. Eleven research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $16.67.

Insider Activity

In related news, CEO Dan Paterson sold 44,121 shares of Verastem stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $8.00, for a total value of $352,968.00. Following the transaction, the chief executive officer directly owned 652,712 shares of the company’s stock, valued at $5,221,696. The trade was a 6.33% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 46,742 shares of company stock worth $373,920 in the last ninety days. 1.94% of the stock is owned by company insiders.

About Verastem

Verastem, operating as Verastem Oncology, is a biopharmaceutical company focused on developing and commercializing targeted therapies for cancer. The company’s research is centered on tumors driven by abnormalities in the RAS/MAPK signaling pathway, which can promote cancer-cell growth and resistance to treatment.

Verastem’s leading product candidates include avutometinib, an oral RAF/MEK clamp designed to inhibit signaling within the RAS/MAPK pathway, and defactinib, an oral focal adhesion kinase inhibitor.