Verastem (NASDAQ:VSTM) Issues Earnings Results, Misses Estimates By $0.27 EPS

Verastem (NASDAQ:VSTM) posted its quarterly earnings data on Thursday. The biopharmaceutical company reported ($0.74) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.47) by ($0.27), Zacks reports. The company had revenue of $24.01 million for the quarter, compared to the consensus estimate 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 Price Performance

Shares of NASDAQ VSTM opened at $9.38 on Friday. Verastem has a twelve month low of $3.43 and a twelve month high of $10.82. The firm has a market cap of $849.45 million, a P/E ratio of -3.53 and a beta of 0.45. The company has a 50 day moving average of $8.36 and a 200 day moving average of $6.24. The company has a quick ratio of 2.22, a current ratio of 2.25 and a debt-to-equity ratio of 1.48.

Analysts Set New Price Targets

Several equities research analysts have commented on the company. Citigroup reissued a “buy” rating on shares of Verastem in a report on Thursday, October 8th. Alliance Global Partners restated a “buy” rating on shares of Verastem in a report on Thursday, October 15th. BTIG Research lifted their price target on Verastem from $18.00 to $24.00 and gave the stock a “buy” rating in a research report on Thursday, October 15th. Wall Street Zen upgraded shares of Verastem from a “sell” rating to a “hold” rating in a research note on Sunday, September 27th. Finally, Guggenheim set a $12.00 price target on shares of Verastem and gave the stock a “buy” rating in a research note on Friday, August 7th. Eleven equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $16.67.

Key Stories Impacting Verastem

Here are the key news stories impacting Verastem this week:

• Positive Sentiment: Verastem’s reported quarterly loss improved from $1.35 per share a year ago, though it remained larger than analysts expected. Zacks report
• Neutral Sentiment: CEO Dan Paterson sold 1,299 shares—about 0.20% of his holdings—in a transaction under a pre-arranged Rule 10b5-1 plan, leaving him with more than 651,000 shares. The small, scheduled sale may have limited significance for investors. SEC filing
• Neutral Sentiment: The company posted an updated corporate presentation on its oncology programs, but the report provided no specific new developments likely to change the investment outlook. Corporate presentation update
• Negative Sentiment: Third-quarter adjusted loss was $0.72 per share, wider than the $0.47-per-share consensus estimate. Revenue of $24.0 million also fell short of expectations of about $26.6 million. The earnings and sales misses are the clearest near-term headwinds for the stock. Third-quarter results

Insider Buying and Selling

In other Verastem news, CEO Dan Paterson sold 44,121 shares of the stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $8.00, for a total transaction of $352,968.00. Following the sale, the chief executive officer directly owned 652,712 shares in the company, valued at approximately $5,221,696. This trade represents a 6.33% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 48,041 shares of company stock worth $386,390. Company insiders own 1.94% of the company’s stock.

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.