Verastem, Inc.
- Open
- 6.65
- Day high
- 7.10
- Day low
- 6.65
- Prev close
- 5.91
- Volume
- 4.2M
- Mkt cap
- $592M
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 11.8
- P/S
- 6.8
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$112K over the last 3 months (0 open-market buys, 4 sales)
- 🏛Institutions accumulating (13F)
Verastem, Inc. (VSTM) is a Healthcare company listed on NASDAQ. The stock is down 3% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 4 sales (SEC Form 4).
Verastem, Inc. (VSTM) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 5 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
VSTM earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 6, 2026 | $-0.43 | $-0.35 | +18.7% | $40M | +75.2% |
| May 7, 2026 | $-0.46 | $-0.46 | +0.0% | $19M | -12.9% |
| Mar 4, 2026 | $-0.49 | $-0.50 | -2.0% | $18M | -16.6% |
| Nov 4, 2025 | $-0.51 | $-1.35 | -164.7% | $11M | -32.0% |
| Aug 7, 2025 | $-0.85 | $-0.39 | +54.1% | $2M | -62.5% |
| Mar 20, 2025 | $-0.81 | $-1.33 | -64.2% | $10M | +6550.7% |
| Aug 8, 2024 | $-1.06 | $-0.31 | +70.8% | $10M | +19900.0% |
| May 9, 2024 | $-1.16 | $-1.26 | -8.6% | — | — |
| Mar 14, 2024 | $-0.82 | $-1.02 | -24.4% | $114000 | -97.8% |
| Mar 14, 2023 | $0.10 | $-0.96 | -1060.0% | $3M | — |
| Nov 3, 2022 | $-1.44 | $-1.08 | +25.0% | — | — |
| Nov 4, 2021 | $-1.08 | $-1.56 | -44.4% | $2000 | +9.1% |
VSTM insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 5, 2026 | Paterson Dandirector, officer: President and CEO | Sell | 1,302 | $5.81 |
| Jun 24, 2026 | Calkins Danielofficer: Chief Financial Officer | Sell | 4,032 | $4.18 |
| Jun 24, 2026 | Calkins Danielofficer: Chief Financial Officer | Sell | 57 | $4.13 |
| Jun 24, 2026 | Paterson Dandirector, officer: President and CEO | Sell | 20,871 | $4.18 |
| May 27, 2026 | BAILEY MICHAEL Pdirector | Grant | 108,000 | — |
| May 26, 2026 | JOHNSON JOHNdirector | Grant | 36,000 | — |
| May 26, 2026 | Bunn Paul A.director | Grant | 36,000 | — |
| May 26, 2026 | ROBERTSON MICHELLEdirector | Grant | 36,000 | — |
| May 26, 2026 | Rowinsky Eric Kdirector | Grant | 36,000 | — |
| May 26, 2026 | Tollefson Karin Annadirector | Grant | 36,000 | — |
| May 26, 2026 | Kapur Anildirector | Grant | 36,000 | — |
| May 26, 2026 | Stuglik Brian Mdirector | Grant | 36,000 | — |
| May 6, 2026 | Paterson Dandirector, officer: President and CEO | Sell | 806 | $5.82 |
| Mar 23, 2026 | Calkins Danielofficer: Chief Financial Officer | Grant | 57 | $5.74 |
| Feb 5, 2026 | Paterson Dandirector, officer: President and CEO | Sell | 970 | $6.69 |
Source: VSTM SEC Form 4 filings, latest Aug 5, 2026. For informational purposes only — not investment advice.
See the full VSTM insider & 13F page →Verastem, Inc. company profile
Overview
Verastem, Inc. (NASDAQ:VSTM) is a development-stage biopharmaceutical company founded in 2010 and headquartered in Needham, Massachusetts. The company went public in January 2012 and focuses on developing innovative cancer treatments through targeted therapies. Verastem operates as a clinical-stage biotechnology firm, meaning it does not yet have approved products generating commercial revenue, but instead invests heavily in research and development to advance promising drug candidates through clinical trials toward potential FDA approval.
Business
Verastem operates in the oncology-focused biotechnology sector, developing targeted cancer therapies that aim to disrupt specific molecular pathways involved in tumor growth and survival. The biotechnology industry involves companies that use biological processes, organisms, or systems to develop products and technologies, particularly in healthcare applications like drug development. The company's primary focus centers on VS-6766, a dual RAF/MEK inhibitor that represents an innovative approach to cancer treatment. To understand this drug, it's important to know that cancer cells often rely on specific signaling pathways to grow and survive. The RAF and MEK proteins are part of a cellular communication pathway that, when overactive, can drive cancer progression. VS-6766 works as a "clamp" that simultaneously blocks both RAF and MEK activity, potentially providing more effective cancer treatment than targeting either protein alone. Verastem's drug development pipeline includes several clinical trials testing VS-6766 in different cancer types and combinations. The RAMP 201 trial evaluates VS-6766 combined with defactinib (a focal adhesion kinase inhibitor) in patients with recurrent low-grade serous ovarian cancer. The RAMP 202 Phase 2 trial tests the same combination in patients with KRAS and BRAF mutant non-small cell lung cancer. Additionally, the RAMP 203 trial, conducted in collaboration with Amgen, combines VS-6766 with Amgen's KRAS-G12C inhibitor LUMAKRAS. The company also has licensing partnerships that provide additional revenue opportunities and validation of its technology. Verastem has licensed VS-6766 to Chugai Pharmaceutical for development and commercialization, and maintains a license agreement with Pfizer for FAK inhibitors used in combination therapies.
Revenue model
As a development-stage biopharmaceutical company, Verastem currently generates minimal revenue and operates primarily on a research and development investment model funded by external capital. The company's limited revenue comes from licensing agreements and milestone payments from pharmaceutical partners rather than product sales. In 2024, Verastem reported $10 million in revenue, likely from licensing agreements with partners like Chugai Pharmaceutical. However, this represents irregular, non-recurring income rather than sustainable commercial revenue. The company's primary business model involves advancing drug candidates through expensive clinical trials with the ultimate goal of either obtaining FDA approval for direct commercialization or licensing/selling the drugs to larger pharmaceutical companies. The company's future revenue potential depends on several factors that could significantly impact profitability. Positive clinical trial results would increase the value of licensing deals and potential acquisition offers, while negative results could eliminate revenue streams entirely. The competitive landscape in oncology is intense, with numerous companies developing similar targeted therapies, which could pressure pricing and market share. Regulatory approval timelines and requirements represent another major variable, as delays or rejections can dramatically impact valuation and partnership opportunities. Manufacturing and development costs remain substantial ongoing expenses, with clinical trials requiring significant upfront investment before any revenue materialization. The company's ability to secure additional partnerships or licensing deals will largely determine its financial sustainability, as it currently burns through cash reserves to fund operations without generating sufficient revenue to cover expenses.
Competitive moat
Verastem's competitive position is relatively weak, with limited moat protection typical of early-stage biotechnology companies. The company's primary potential advantage lies in its dual RAF/MEK inhibitor approach with VS-6766, which may offer differentiated efficacy compared to single-target therapies. However, this technological advantage remains unproven until clinical trials demonstrate superior outcomes. The company faces significant competitive threats from larger pharmaceutical companies with substantially greater resources, established market presence, and diversified drug portfolios. Major players like Roche, Novartis, and Bristol Myers Squibb operate in similar oncology spaces with competing RAF/MEK inhibitors and combination therapies. These competitors can conduct larger, more comprehensive clinical trials and have established relationships with oncologists and regulatory authorities. Verastem's partnerships with Chugai Pharmaceutical and Pfizer provide some validation and resources, but these relationships also limit the company's control over its key assets. The licensing agreements, while providing some revenue, essentially transfer much of the commercial upside to partners who have greater capabilities to advance and commercialize the drugs. The biotechnology sector's intellectual property landscape offers some protection, but patent expiration and the potential for competitors to develop similar mechanisms of action represent ongoing threats. Additionally, the company's small size and limited cash resources make it vulnerable to larger competitors who can outlast development timelines and regulatory challenges that might force Verastem to abandon promising programs.
Risks & safety
Verastem presents significant financial risk with a poor margin of safety profile typical of cash-burning biotechnology companies. • **Cash Position**: $117.6 million in cash and short-term investments as of Q1 2025, providing limited runway given current burn rates • **Cash Burn**: Operating cash flow of -$38.7 million in Q1 2025, suggesting approximately 3 years of runway at current spending levels • **Debt Concerns**: Total liabilities of $164.1 million exceed total assets of $131.7 million, indicating balance sheet stress • **Solvency Risk**: Negative shareholders' equity of -$32.4 million raises going concern questions • **Valuation**: Trading at negative enterprise value due to cash position, but underlying business generates no sustainable revenue • **Liquidity**: Strong current ratio of 3.5x provides short-term payment ability, but this reflects cash reserves rather than operational strength • **Additional Considerations**: Company will likely need additional financing within 2-3 years, potentially diluting existing shareholders significantly
Recent development
Based on the available financial data, Verastem has maintained focus on advancing its VS-6766 program through multiple clinical trials over recent years. The company has established several key partnerships that validate its technology platform and provide non-dilutive funding sources. The most significant strategic development appears to be the expansion of VS-6766 testing across multiple cancer types through the RAMP clinical trial program. The company has structured these trials to evaluate both single-agent and combination therapy approaches, with RAMP 201 focusing on ovarian cancer, RAMP 202 targeting lung cancer, and RAMP 203 exploring combinations with Amgen's KRAS inhibitor. Verastem's partnership strategy has evolved to include collaborations with major pharmaceutical companies, providing both validation and resources. The licensing agreement with Chugai Pharmaceutical represents a significant strategic pivot, allowing the company to retain rights in certain territories while benefiting from a partner's development and commercialization expertise. The clinical collaboration with Amgen further demonstrates the company's ability to attract interest from established pharmaceutical companies. The company has also focused on optimizing its capital allocation, as evidenced by the irregular revenue recognition pattern suggesting milestone-based partnership agreements. This approach allows Verastem to advance multiple programs simultaneously while managing cash burn through strategic partnerships rather than relying solely on equity financing.
VSTM company profile · for informational purposes only — not investment advice.
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