Justin Zelin, an analyst from BTIG, maintained the Buy rating on Verastem (VSTM – Research Report). The associated price target remains the same with $27.00.
Justin Zelin has given his Buy rating due to a combination of factors concerning Verastem’s progress and potential in their ongoing clinical trials and regulatory advancements. Verastem’s focus on their rolling NDA submission for accelerated approval of avutometinib and defactinib in recurrent low-grade serous ovarian cancer (LGSOC) presents a significant opportunity, with expectations for commercial launch in 2025. The company’s upcoming presentation of updated top-line data from their RAMP-201 study and initiation of their Phase 3 RAMP-301 study further underscore the potential for their treatment regimen to meet an unmet medical need. Additionally, Verastem’s engagement with regulatory authorities in Europe and Japan indicates a strategy to address global patient needs.
Furthermore, the anticipation surrounding Verastem’s presentation at the ASCO conference of initial data from their RAMP-205 trial in frontline metastatic pancreatic cancer could reveal the broader applicability of avutometinib. This, combined with the planned release of data from other trials in KRAS G12C-mutant NSCLC, demonstrates Verastem’s commitment to expanding their treatment’s impact. Verastem’s financial position, with cash and equivalents of $110.1 million, supports their continued research and development efforts. Zelin’s valuation of Verastem also takes into account a DCF analysis with a 14% discount rate and a 2% terminal growth rate, which suggests a favorable long-term outlook for the company’s stock.
VSTM’s price has also changed dramatically for the past six months – from $6.670 to $11.920, which is a 78.71% increase.
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Verastem (VSTM) Company Description:
Verastem, Inc., operating as Verastem Oncology, is a biopharmaceutical company focusing on developing and commercializing medicines to improve the survival and quality of life of cancer patients. It markets COPIKTRA™ (duvelisib), an oral inhibitor of phosphoinositide 3-kinase (PI3K) and dual inhibitor of PI3K-delta and PI3K-gamma, which is indicated for the treatment of adult patients with relapsed or refractory chronic lymphocytic leukemia/small lymphocytic lymphoma after at least two prior therapies and relapsed or refractory follicular lymphoma (FL) after at least two prior systemic therapies. The indication in FL is approved under accelerated approval based on overall response rate. In addition, it is developing the focal adhesion kinase inhibitor defactinib, which is being evaluated in three separate clinical collaborations in combination with immunotherapeutic agents for the treatment of various different cancer types, including pancreatic cancer, ovarian cancer, non-small cell lung cancer (NSCLC), and mesothelioma. Verastem, Inc. has collaboration agreements with Yakult Honsha Co., Ltd., CSPS Pharmaceutical Group Limited and The Leukemia & Lymphoma Society. The company was founded by Richard H. Aldrich, Michelle Dipp, Piyush Gupta, Satish Jindal, Eric S. Lander, Robert F. Weinberg, and Christoph H. Westphal on August 4, 2010 and is headquartered in Needham, MA.
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