Analyst Sean Lee CFA from H.C. Wainwright maintained a Buy rating on Verastem (VSTM – Research Report) and keeping the price target at $17.50.
Sean Lee CFA has given his Buy rating due to a combination of factors surrounding Verastem’s promising pipeline and anticipated regulatory milestones. The imminent release of topline results from the RAMP 201 study and the subsequent submission of a New Drug Application (NDA) for the treatment of low-grade serous ovarian cancer (LGSOC) are significant catalysts. These developments, coupled with the expected completion of the NDA submission in the second half of 2024, and the potential for U.S. approval in the latter half of 2025, underscore the potential for Verastem’s therapy. Moreover, the ongoing pivotal Phase 3 study of avutometinib combo serves as a basis for future full regulatory approvals in the U.S. and Europe, further bolstering the company’s prospects.
In addition to the LGSOC developments, the anticipation of initial safety and efficacy results from the Phase 1 study in metastatic pancreatic cancer at the 2024 ASCO annual meeting adds to the positive outlook. These results could provide valuable insights into the market potential of the treatment. The valuation of the company, based on a hybrid of price-sales and price-earnings multiple analyses and discounted future earnings, also supports the Buy rating, with a 12-month price target set at $17.50 per diluted share. These factors, along with the strategic progress on clinical studies in other indications and the expansion of their pipeline through partnerships, underpin Sean Lee CFA’s optimistic assessment of Verastem’s stock.
Lee CFA covers the Healthcare sector, focusing on stocks such as Alphatec Holdings, Verastem, and Cytosorbents. According to TipRanks, Lee CFA has an average return of -19.8% and a 26.85% success rate on recommended stocks.
In another report released on May 9, RBC Capital also maintained a Buy rating on the stock with a $32.00 price target.
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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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