Verastem (NASDAQ:VSTM) Issues Quarterly Earnings Results, Meets Expectations

Verastem (NASDAQ:VSTM) released its earnings results on Thursday. The biopharmaceutical company reported ($0.46) earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of ($0.46), Zacks reports. The business had revenue of $18.67 million for the quarter, compared to analyst estimates of $21.43 million.

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

• Verastem reported $18.7 million in Q1 net product revenue (nearly $50 million since launch) and expects the LGSOC CO-PACK franchise to be self-sustaining in H2 2026, driven by steady new-patient starts and expanding prescribers.
• Management has retooled commercial execution—appointing a new CCO, adding sales/headcount, launching the “Reimagine Recurrent LGSOC” campaign and improved patient follow-up—to drive earlier use at first recurrence and improve on-therapy retention.
• VS-7375 (TARGET-D) is advancing rapidly: phase I/II dose escalation is evaluating up to 1,200 mg with 900 mg as the likely go-forward dose, and three phase II registration-directed trials (PDAC, NSCLC, CRC) are initiated with mid-year enrollment and a planned first-half 101 safety/PK update.
• Early U.S. data show better tolerability and PK at higher doses than reported in China and no drug-related pneumonitis so far, supporting combination strategies (EGFR, PD-1) but efficacy/durability readouts and safety in larger cohorts remain pending.
• Cash and investments totaled $181.7 million at quarter-end, providing runway into the first half of 2027; given high R&D (Q1 $38.2M) and SG&A spend, the company may need non-dilutive financing or strict execution to avoid dilution if revenues or cost trends underperform.

Verastem Trading Down 5.8%

NASDAQ VSTM opened at $5.66 on Friday. The company has a debt-to-equity ratio of 1.33, a quick ratio of 3.07 and a current ratio of 3.09. The firm has a market cap of $497.17 million, a PE ratio of -1.77 and a beta of 0.34. Verastem has a one year low of $4.01 and a one year high of $11.24. The firm’s fifty day moving average is $5.74 and its two-hundred day moving average is $7.14.

Analyst Upgrades and Downgrades

VSTM has been the subject of several recent analyst reports. BTIG Research reaffirmed a “buy” rating and set a $19.00 price objective on shares of Verastem in a research report on Monday, April 20th. Weiss Ratings lowered Verastem from a “sell (d-)” rating to a “sell (e+)” rating in a report on Monday. Jefferies Financial Group restated a “buy” rating and issued a $15.00 price target (down from $19.00) on shares of Verastem in a research note on Monday, March 30th. Mizuho set a $18.00 price target on Verastem in a report on Thursday, February 19th. Finally, HC Wainwright reaffirmed a “buy” rating and set a $18.00 price objective on shares of Verastem in a research report on Friday, April 10th. Two analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $16.60.

Institutional Investors Weigh In On Verastem

Several large investors have recently modified their holdings of VSTM. Russell Investments Group Ltd. lifted its holdings in shares of Verastem by 182.9% in the 3rd quarter. Russell Investments Group Ltd. now owns 4,578 shares of the biopharmaceutical company’s stock valued at $40,000 after buying an additional 2,960 shares during the period. E Fund Management Co. Ltd. acquired a new position in Verastem during the second quarter worth $49,000. Nebula Research & Development LLC acquired a new position in Verastem during the second quarter worth $53,000. The Manufacturers Life Insurance Company grew its holdings in Verastem by 9.8% during the second quarter. The Manufacturers Life Insurance Company now owns 16,188 shares of the biopharmaceutical company’s stock worth $67,000 after acquiring an additional 1,440 shares during the period. Finally, BNP Paribas Financial Markets raised its position in Verastem by 110.9% in the third quarter. BNP Paribas Financial Markets now owns 8,550 shares of the biopharmaceutical company’s stock worth $75,000 after acquiring an additional 4,496 shares in the last quarter. Hedge funds and other institutional investors own 88.37% of the company’s stock.

Verastem Company Profile

Verastem Oncology, Inc is a clinical-stage biopharmaceutical company focused on the discovery and development of small molecule therapies that target cancer stemness and resistance pathways. Established in 2010 and headquartered in Needham, Massachusetts, Verastem Oncology applies a precision-medicine approach to identify key signaling nodes responsible for tumor growth and relapse, with an emphasis on hematologic malignancies and solid tumors. The company’s research platform integrates insights into complex signaling networks to advance novel compounds from early discovery through clinical proof of concept.

The company’s lead marketed product is COPIKTRA (duvelisib), an oral inhibitor of PI3K-delta and PI3K-gamma, which received U.S.